Bitcoin has observed a recovery surge toward $117,000 as on-chain data shows Binance users have been making consistent withdrawals recently.
When the value of this metric is positive, it means the inflows are overwhelming the outflows on the platform. Generally, one of the main reasons why investors deposit their coins in exchanges is for selling-related purposes, so this kind of trend can be a bearish sign for the asset’s price.
On the other hand, the indicator having a value under zero implies the holders are taking a net number of tokens out of the custody of the exchange. Such a trend may be a sign that the investors are accumulating, which is naturally something that can be bullish for BTC.
Now, here is a chart that shows the trend in the Bitcoin Exchange Netflow for Binance, the largest exchange in terms of trading volume, over the past month:
As displayed in the above graph, the Bitcoin Binance Exchange Netflow has been negative for the last nine days, indicating that investors have constantly been pulling supply out of the platform.
“Most analysts expect the Fed to cut rates this week, with prediction markets like Polymarket showing a 92% probability of a rate cut,” notes Maartunn. “The steady outflows from Binance may reflect early positioning ahead of this event.”
It now remains to be seen how the market will react when Powell delivers the Fed decision, and whether the streak of Bitcoin net outflows from Binance will continue.
From the chart, it’s visible that Binance has seen a large stablecoin netflow spike corresponding to the deposit of nearly $2 billion worth of stablecoins. Investors transfer their fiat-tied tokens to exchanges when they want to buy into an asset like Bitcoin, so this could be another indication of investors repositioning in anticipation of the Fed decision.
At the time of writing, Bitcoin is trading around $116,400, up around 3.6% over the last week.
