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Binance Witnesses Record Inflows of 138K BTC

As opinions on the future course of the Bitcoin price differ, Binance witnesses record inflows of 138K BTC. – Bitcoin (BTC) funds pouring into the world’s largest exchange Binance has had a massive jump that is reminiscent of the capitulation seen in the bear market of 2018.

According to information obtained from the on-chain analytics website CryptoQuant, a massive amount of around 60,000 BTC was deposited into Binance’s wallet on November 18.

The largest exchange inflows since the latter half of 2018

There is continuing concern over the potential for price contagion in Bitcoin (BTC) due to the insolvency of FTX and the consequent panic selling.

Now, the most recent on-chain numbers from Binance might give a another trigger for concerned markets. Binance has witnessed its largest daily inflow on record, thus this could be an extra catalyst for nervous markets.

In spite of the fact that November 18 is not yet over, preliminary information from CryptoQuant places today’s inflows at more over 138,000 BTC for the day so far.

Binance BTC inflows chart. Source: CryptoQuant

To put the deposit into perspective, even after accounting for withdrawals made not only at Binance but also at other major exchanges, the inflows have been the largest since November 30, 2018, despite the fact that there have been withdrawals. After a 40% drop, the Bitcoin to US Dollar exchange rate reached its bottom at $3,100 two weeks later.

For Binance itself, the move means that its BTC reserves are now higher than they were before the FTX debacle began; they are currently at 573,000, as opposed to 513,000 on November 6th.

Binance BTC reserve chart. Source: CryptoQuant

One observer was quick to point out that little over 59,000 had come via a “de-peg” of Binance’s Bitcoin BEP2 (BTCB) token, which indicates that the event has not gone ignored.

BTCB is a Bitcoin-backed currency that runs on the Binance Chain and has a reserve address that is public knowledge. This wallet had a total outflow of 127,351 BTC during the day, which resulted in it having 68,200 BTC when this article was written.

According to the chief executive officer of CryptoQuant, Ki Young Ju, the fall in the reserve that occurred at the same time as the decrease in the market cap of BTCB shows that serious selling may be afoot, in contrast to usual operations.

In a series of tweets, Ki elaborated on the concept he termed “sellside pressure,” which included the following:

Bitcoin BEP2 (BTCB) reserve address transaction summary (screenshot). Source: BTC.com

The week of heat generated by exchanges

On the other hand, opinions were not even close to being in agreement over the matter. Some people said that the massive influxes were nothing more than an internal rearrangement, which would have no further effects.

“Today, Binance had a significant influx of up to 127,351 bitcoins as well as a significant withdrawal of approximately 50,000 bitcoins. In a tweet that was widely retweeted, cryptocurrency journalist Colin Wu stated that “on-chain verification shows that these inflows and outflows are organised by internal wallets, which are transfers between cold wallets and wallets for proof of reserves.” On-chain verification shows that these inflows and outflows are organised by internal wallets.

A technician at the analytics platform Nansen by the name of Andrew T tweeted, “I don’t really get the Jump rumours,” in reference to the overall inflow tally to Binance:

Bitcoin exchange BTC netflow chart. Source: CryptoQuant

According to a report by Cointelegraph, users of the exchange pulled out more than $3 billion in the days following the collapse of FTX, and this trend is still ongoing.

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