What do Bitcoin and Binance whales have in common?

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What do Bitcoin and Binance whales have in common?

Bitcoin (BTC) whales appear to have decided to phase out other stablecoins, with their current preference for Binance stablecoin BUSD.

According to CryptoQuant analyst Mignolet, on September 27, the crypto exchange experienced its highest trading volume since June. 

According to the analyst, this is due to increased whale activity. Therefore, another notable aspect is the higher trading volume that comes with the preference for BUSD by the same whales.

Source: CryptoQuant

What else is happening on exchanges?

While Mignolet noted that the entry did not lead to a withdrawal, some other movement was seen in the overall currency performance. According to data from analytics platform Glassnode, cumulative withdrawals have increased more than usual in recent days. 


Additionally, the platform shows that while there were 36,154 transfers on September 25, investor withdrawals were 55,726 at press time. The fallout could mean that many investors aren't excited about the crypto market's recovery. 

Source: Glassnode

Furthermore, when looking at the input portion, the amount of deposits is not close to the level of remittances abroad. Despite registering over 22,000 deposits two weeks ago, the average forex inflow has dropped to 19,429.  

Given the current signs, that could mean that Binance is the only exchange with such a spike. However, it seems that only BTC bought with BUSD is getting the big inflow. Emerging reports from Glassnode show that seven-day BUSD outflow volumes hit an all-time high of 4,840,318,404.


Derivatives market is not left out

In another CryptoQuant update, BTC reserves in the derivatives market have increased. This was noted by MAC_D, another analyst at the online data platform.

MAC_D notes that the increase will also lead to an increase in derivatives trading activities. However, there have been signs that the BTC price goes down or up depending on what has happened in the derivatives market. The analyst also said: 

“If a derivatives exchange's BTC Reserve is greater than the BTC Reserve of a spot exchange, it is found that the price will decrease as the derivatives exchange's BTC Reserve increases. Therefore, if the size of BTC reserves from derivatives exchanges decreases, it is likely that BTC will increase again.”

Also, looking at data from Coinglass shows that there has been an increase in liquidity in the futures market. The crypto futures information platform also shows that over $31 million has been liquidated in the past 24 hours. 

With BTC price above $19,000, many traders had short positions liquidated, with $14.32 million versus $6.49 million long.

Source: Coinglass

According to these updates, it may be in the best interests of investors to refrain from thinking about a long-term BTC bull run. However, know that turning to greens can also be a possible outcome.


Sep 30, 2022

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