Bitcoin Reserve On The Crypto Exchange Binance Has Observed Sharp Growth In Recent Days
As pointed out by an analyst in a CryptoQuant , the funding rates have been negative while these inflows have been made.The “exchange reserve” is an indicator that measures the total amount of Bitcoin currently stored in the wallets of a centralized exchange (which, in this case, is Binance).
Now, here is a chart that shows the trend in the Bitcoin exchange reserve for the crypto exchange Binance during the past month:
The value of the metric seems to have been riding an upwards momentum in recent days | Source:As you can see in the above graph, the Binance Bitcoin exchange reserve started to rapidly fall down around ten days ago as the crash started.
This happened because the collapse of FTX made investors more wary of crypto exchanges than ever before, and so they were withdrawing coins off centralized platforms in hordes.
The quant has also talked about another indicator’s trend, the “Funding Rate,” which tells us whether the futures market is leaning towards shorts or longs right now. The below chart displays the trend in this metric.
Looks like the metric has a red value currently | Source:The funding rates are highly negative at the moment, implying the majority of the contracts are shorts. Based on this the analyst thinks a short squeeze could possibly take place, which would propel the price in the short term. However, the quant also believes that’s when the whales would potentially make their move, and dump the crypto.
BTC Price
At the time of writing, Bitcoin’s price floats around $16.5k, down 6% in the last week.BTC continues to consolidate | Source:
Featured image from Rémi Boudousquié on Unsplash.com, charts from TradingView.com, CryptoQuant.com