Binance Data Shows Reason for Heavy Bitcoin (BTC) Activity.
A closer look at Binance Bitcoin (BTC) transaction activity will indicate why there have been huge trading volumes recently. BTC saw wide swings in the past week, with a gap of around $2,000 between weekly highs and lows. Despite the huge volatility, the top cryptocurrency witnessed the highest trading activity in over three months. On Tuesday, BTC trading volume was the highest since the decline in June this year, as the crypto winter atmosphere intensified.
What Binance Bitcoin Activity Shows
There has been a huge increase in Binance spot trading volume, which has apparently led to BTC volume growth. According to Crypto Quant analysis, spot trading activity on Binance was the cause. The trading pattern has been on a continuous rise ever since the top exchange launched free spot trading. In July 2022, Binance launched zero-fee Bitcoin trading. Also, the price correlation with regard to spot trading on Binance was disrupted in recent times.
“The relationship between Binance Perp and the Spot market is highly price correlated, but since January this year it has become less effective. The BUSD deposit count has also increased”
Meanwhile, BUSD deposits have been on the rise while BTC/BUSD trading volume is increasing. There is also a chance that some traders have bought Bitcoin with BUSD. Amidst all this, BTC continues to go down the path of high volatility. In the last week, BTC showed a price gap of almost 11% between its weekly low and high. At the time of writing, the BTC price stands at $19,327.79, up 1.77% in the last 24 hours, according to price tracking platform CoinMarketCap.
Foreign exchange reserves on the way up
As BTC continues to fluctuate, traders seem to be playing the waiting game looking for a “buy the dip” opportunity. Looking at the Bitcoin reserves on exchanges, there has been an increase on all exchanges as well as in derivatives. As reserves on exchanges continue to increase and BTC prices rise, a price recovery may well be on the cards. On the other hand, there has been a sudden increase in “buy the dip” social activity after a long-term decline. This may be a sign that the trader expects a local bottom to enter a position.
The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
