Binance sees biggest bitcoin outflow since June 2023 as whales send stablecoins

[DigitalToday intern reporter Seung-a Yoo (유승아)] Bitcoin (BTC) outflows from Binance have risen to the highest level since June 2023. A recent trend of large investors sending stablecoins to Binance is also emerging, prompting analysis that bitcoin accumulation is strengthening.

On Oct. 6 (local time), blockchain media outlet Cointelegraph said on-chain analytics firm CryptoQuant said Binance’s net bitcoin outflows totalled 23,137 BTC in the seven days through Sept. 27. That is the biggest weekly outflow since Binance’s bitcoin balance fell by 44,942 BTC in one week in June 2023.

CryptoQuant analysed that bitcoin leaving exchanges is a signal of accumulation with a long-term investment character. It explained that bitcoin withdrawn from exchanges is difficult to use immediately as sell supply on exchanges, reducing circulating supply.

A similar trend appeared in June 2023. After a large bitcoin outflow from Binance at the time, bitcoin rose from $26,300 to $30,500 in the next weekly candle, hitting a 12-month high. Still, the two cases cannot be seen as the same because the outflow then was about twice this time’s scale.

Binance’s bitcoin reserves also fell quickly. Reserves, which stood at 704,800 BTC on Sept. 20, later dropped to about 663,100 BTC, a decline of about 40,000 BTC. CryptoQuant analysed that if this accumulation trend continues while selling pressure weakens, bitcoin could quickly break out of its current sideways range.