Bitcoin chain data says no signs of FUD among Binance users
Despite the CFTC suing Binance, Bitcoin on-chain data has so far shown no signs of FUD development among traders on the cryptocurrency exchange.
Bitcoin On-Chain calculations related to Binance are normal so far
Yesterday, news broke that the US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance and its CEO, Changpeng Zhao, for violating US derivatives trading rules. After the announcement, the market reacted with the price of Bitcoin, which went below the $27,000 level.
However, users on the exchange itself seem to be calm so far. As an analyst in a CryptoQuant post explained, FUD surrounding the exchange is currently not visible in BTC on-chain data.
The first relevant indicator here is the exchange’s online flow, which measures the net amount of Bitcoin going into or out of the exchange’s wallets. The chart below shows the latest data for this calculation.
The value of the metric seems to have been slightly negative in recent days | Source: CryptoQuant
As shown in the graph above, the Bitcoin Binance online stream has recently had a negative value, which means that investors have withdrawn a net number of coins from the platform.
Normally, when exchanges have problems around them, investors develop FUD and many withdrawals are seen from the exchange. However, although some withdrawals have been seen, the scale is still relatively low.
From the chart it is clear that larger spikes were seen earlier this month alone. This suggests that users have not entered a state of panic yet as they feel safe enough to keep their coins in the custody of Binance.
Next is the metric related to the derivatives market, the open interest, which measures the total number of Bitcoin futures trading contracts open on Binance.
Looks like the value of the metric has been relatively high recently | Source: CryptoQuant
As can be seen in the graph, Bitcoin open interest on Binance has climbed to high values with the latest price increase. The metric’s value has not registered any significant change following the CFTC news, suggesting that derivatives traders have also not closed a large number of contracts and therefore have not shown any signs of FUD.
The funding rate, a measure of the periodic fee that traders of futures contracts exchange with each other, has also remained positive, showing that investors on the platform continue to be bullish on BTC.
The metric has a green value at the moment | Source: CryptoQuant
All these indicators show that traders on the platform, whether spot or derivatives, have shown no noticeable reaction to the CFTC suing the exchange. Of course, at least that’s the story so far; it is currently unclear whether things may change in the coming days.
BTC price
At the time of writing, Bitcoin is trading around $26,800, down 4% in the last week.
BTC has declined below $27,000 | Source: BTCUSD on TradingView
Featured Image by Kanchanara at Unsplash.com, Charts by TradingView.com, CryptoQuant.com
