Data from Cryptoquant indicates that 71,579 Bitcoins or over $1.1 billion in derivative trades left the Binance exchange on October 26 2022 – the largest ever outflow of bitcoin on an exchange in one day.
Binh Dang, an analyst at Cryptoquant, noted that its still unclear how much of this was due to internal wallet arrangement at the world’s largest exchange but it nonetheless contributed to driving total bitcoin outflows to 94,024, about $1.9 billion, and the largest amount of outflows since July 2022.
Based on the following graph by Cryptoquant, the Binance exchange has experienced four major spikes in Bitcoin derivatives outflows over the last 12 months as derivative exchange reserve falls on the platform.
The October 2022 outflows outpaced both the March 2020 crash and another buying spree in June 2022 when the price of Bitcoin dropped to $17,600.
Binance aside, the amount of BTC held on major exchanges tracked by CryptoQuant between October 25 through October 26 2022 declined by around 42,500 BTC (about $860 million).
Based on past trends, the recent high outflows from derivative exchanges could mean that Bitcoin, which has maintained its price above $20k for seven straight days, may be bottoming out.
“In the strongest price declines in the two years before 2020, and 2021, each appearance of a strong downtrend on derivative reserve showed a similar decrease in selling pressure. How about this time?” asked Dang.
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