VOT Research Desk
Binance experienced a significant inflow of up to 127,351 bitcoins and a significant outflow of approximately 50,000 bitcoins.
In a widely shared tweet, cryptocurrency journalist Colin Wu said that “on-chain verification demonstrates that these inflows and outflows are organised via internal wallets, which are transfers between cold wallets and wallets for proof of reserves.”
Regarding the general amount of influx to Binance, Andrew T, a technician at analytics platform Nansen, tweeted: “I don’t really understand the Jump rumours:
There have been some significant outflows over the last week, but there have also been inflows in other places. It doesn’t feel proper to say “they’re transferring to Binance to dump.”Bitcoin exchange inflows mirror the 2018 crypto market capitulation, although the causes of Binance’s massive changes are yet unknown.
The largest exchange saw inflows of $16,639 less than Bitcoin BTC tickers The recent massive rise on Binance is reminiscent of the bear market capitulation in 2018.
According to data from on-chain analytics company CryptoQuant, a sizable amount of around 60,000 BTC entered Binance’s wallet on November 18.Fears of a BTC price contagion due to FTX bankruptcy and consequent panic selling are still there.
The most recent on-chain data from Binance, where the exchange had its largest daily inflow on record, may now act as another impetus for uneasy markets.
Even though November 18 is still in progress, preliminary data from CryptoQuant shows that there have been over 138,000 BTC in inflows today. To put the deposit into perspective, even after accounting for outflows at other significant exchanges in addition to Binance, the inflows are still the most since November 30, 2018. BTC/USD hit its bottom at $3,100 two weeks later after declining by 40%.
For Binance, the action means that its BTC reserves are now larger than they were prior to the FTX fiasco – 573,000 as opposed to 513,000 on November 6.
