A record 55,000 BTC was withdrawn on the top cryptocurrency exchange, Binance, on October 27, a record in their history, on-chain trackers reveal.
Bitcoin Investors Go on a Buying Spree
Recent data published by CryptoQuant shows about 55,000 BTC leaving Binance, a top crypto exchange. This withdrawal amount is higher than has ever been experienced before.
Despite warnings that a macro bottom may not yet have occurred, Bitcoin investors have wasted no time snapping up BTC, pushing prices above $20,000. The past two days’ gains delivered a sea change to exchange user behaviour, with BTC balances dropping across the board.
As the largest exchange by volume, Binance was of particular interest and saw a net position change of over 55,000 BTC on Oct. 26 — the most ever. The outflows beat all other buying sprees, including the $17,600 dip in June this year and the March 2020 crash
Bitcoin Sets Multi-Month Record
CryptoQuant contributor Binh Dang further noted that derivatives platform outflows set multi-month records.
“In 1 year from now, yesterday was the day with the biggest 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 moves could have made up some of the totals.
“That number contributes to bringing the outflow of BTC from derivatives exchanges to 94,024 Bitcoin. This is the most significant number since July. This amount has helped drastically reduce the total reserves on derivatives exchanges after spiking since Bitcoin’s price dropped in May.”
Dang added that such derivatives outflows had previously accompanied lower sell-side pressure on Bitcoin.
“While there is still a lack of on-chain confirmation of Bitcoin bottoming, looking back at the history of late 2018, we will see the difference,” he concluded.
Why the Sudden Spike in the Bitcoin Market?
After drifting lower for months and spending recent weeks in a tiny trading range, BTC/USD has delivered 24-hour gains above 7%.
Hitting its highest levels since mid-September, the largest cryptocurrency rewards those who refused to sell.
There could be a couple of reasons contributing to this trend:
- Speculations that the FED could change its tune on rate hikes
- Bitcoin has flat-lined for quite too long. Volatility even fell below that of some major fiat currencies, making BTC look more like a stablecoin than a risk asset.
Would Gains Change Bitcoin Bear Market?
Turning to exchanges’ stock of BTC, from Oct. 25 through Oct. 26, the major platforms tracked by CryptoQuant saw around 42,500 BTC in net outflows.
Unlike with Binance, cross-platform position change did not set a global record, with June remaining higher.
Summing up, fellow CryptoQuant IT Tech warned that the good times might not last long. The United States Federal Reserve meeting on interest rates could deliver an unwelcome pivot.
“For me, it could mean that is some kind of fake pump before FOMC meetings 2.11.2022,” he wrote in a further Quicktake. “DXY is going down and helped S&P500 and Bitcoin grow up. Be careful because we are still in a Bear market, and one small pump has not changed this.”