Over the past few weeks, Bitcoin has been moving to regain key historical levels around $70,000 and $75,000. Interestingly, on-chain data suggests that this may be due to a steady influx of new demand.
About $55M in BTC exits Binance Daily — Analyst
In a recent post on CryptoQuant’s QuickTake, influential analyst Burak Kesmeci pointed out interesting and dynamic changes in Binance, the world’s leading exchange by trading volume. This depends on data from the Bitcoin: Exchange Netflow – Binance indicator. This tracks the amount of BTC (in USD) leaving or coming into Binance.
When the Binance BTC Netflow indicator falls below 0 and continues to fall downwards, it is a sign of increasing outflows. This means that more BTC is being withdrawn from Binance rather than being deposited.
On the other hand, a positive number (above 0) indicates that more Bitcoin is being deposited into the exchange than is being withdrawn. This behavior is often associated with increased bearish pressure. This is because increased inflows to exchanges may be due to increased desire to sell.
According to analysts, about $55 million worth of Bitcoin leaves exchanges every day. When exchanges, especially Binance, record outflows of this magnitude, it is usually a sign that investors are starting to accumulate their holdings rather than exchanging them for other coins.
Interestingly, Kesmeci points out that these massive outflows are reflected in Bitcoin’s most recent price movements. According to analysts, BTC has risen about 13.8% during this period, taking its price from around $65,000 to recent highs of $74,000. Notably, this occurred as Binance BTC Netflow SMA30 entered negative territory.
Kesmeci also pointed out that as of March 20, the U.S. stock market was in deep deficit with increasing bearish pressure along with volatility. However, the Bitcoin market remains strong. According to cryptocurrency experts, the growing demand for Bitcoin is an apt explanation for the flagship cryptocurrency’s apparent independence.
Bitcoin Market Overview
As of press time, Bitcoin is worth approximately $70,647, reflecting a growth of 0.54% since the last 24 hours. However, on a weekly scale, the world’s leading cryptocurrency was slightly negative 0.3% from its historical value.
Meanwhile, the U.S. Bitcoin spot ETF currently has cumulative net outflows of $56.28 billion as of March 19, according to data from SoSoValue. Surprisingly, the U.S. Bitcoin Spot ETF went into the red on March 18 following an initially positive week, recording outflows of approximately $162.52 million and then another $90 million on March 19.
Featured image from iStock, chart from Tradingview
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