A record 55,000 Bitcoin, or over $1.1 billion, was just withdrawn from Binance
Bitcoin (BTC) has seen record buying activity as BTC/USD returns to six-week highs.
The latest data from on-chain research firm CryptoQuant shows that more BTC are leaving the main exchange Binance in a single day than ever before.
Binance ends the day 55,000 BTC lighter
Despite warnings that a macro bottom may not yet have occurred, Bitcoin investors have wasted no time snapping up BTC above $20,000.
The past two days’ gains brought about a change in exchange user behavior, with BTC balances falling across the board.
As the largest exchange by volume, Binance was of particular interest, seeing a net position change of over 55,000 BTC on October 26 – the largest ever.
The outflows beat all other buying trips, including the $17,600 drop in June this year and the crash in March 2020.
CryptoQuant contributor Binh Dang further noted that derivatives platform outflows set multi-month records.
“A year from now, yesterday was the day with the largest number of coins moved out of the derivatives exchange: 71,579 Bitcoin,” he wrote in one of the firm’s Quicktake posts, noting that internal movements could have accounted for some of the total. .
“That number helps bring the outflow of BTC from derivatives exchanges to 94,024 Bitcoin. This is the most significant figure since July. This amount has helped drastically reduce the total reserves on derivatives exchanges after spiking since Bitcoin’s price fell in May.”
Dang added that such derivative outflows had once accompanied reduced sell-side pressure on Bitcoin more broadly.
“Although there is still a lack of confirmation on the chain of the Bitcoin bottom, looking back at the history until the end of 2018, we will see the difference,” he concluded.
“In the sharpest price declines in the two years before 2020 and 2021, each appearance of a strong downtrend in the derivatives reserve saw a similar reduction in selling pressure. How about this time?”
Gains Have ‘Not Changed’ Bitcoin Bear Market
As for the exchange’s shares of BTC, from October 25 to October 26, the major platforms tracked by CryptoQuant saw around 42,500 BTC in net outflows.
Related: Why is the crypto market up today?
Unlike Binance, cross-platform change of position did not set a global record, with June still higher.
In summary, other CryptoQuant contributors warned IT Tech that the good times may not last long. The US central bank’s meeting on interest rates may deliver an unwanted pivot.
“To me, that could mean some sort of pump fake before FOMC meetings on 11/2/2022,” he wrote in a further Quicktake.
“DXY is going down and helped the S&P500 and Bitcoin to grow up. Be careful because we are still in a Bear market and a small pump has not changed this.”
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