Over the past couple of weeks, Bitcoin has been moving to reclaim its past key levels around $70,000 and $75,000. Interestingly, on-chain data suggests that this may be due to a steady influx of new demand.
Approximately $55M In BTC Exits Binance Daily — Analyst
In a recent QuickTake post on CryptoQuant, influential analyst Burak Kesmeci points out an interesting dynamic shift on Binance, the world’s leading exchange by trading volume. This is dependent on data from the Bitcoin: Exchange Netflow – Binance metric, which keeps tabs of how much BTC (in USD) is leaving or entering Binance.
When the Binance BTC Netflow metric falls below zero and continues further downwards, it signals that outflows are increasing. This means that more BTC is being withdrawn from Binance, rather than being deposited.
On the other hand, positive readings (above 0) indicate that more Bitcoin is being deposited into the exchange than is being withdrawn. This behavior is often associated with increasing bearish pressure, as increasing inflows to exchanges could be due to increasing selling appetite.
According to the analyst, around $55 million in Bitcoin is leaving the exchange on a daily basis. When exchanges — especially Binance — record outflows of this magnitude, it is typically a sign that investors are about to start accumulating their holdings, rather than exchanging them for other coins.
Interestingly, Kesmeci points out that this large series of outflows is reflected in Bitcoin’s most recent price action. According to the analyst, BTC climbed by approximately 13.8% during this period, thereby pushing prices from around $65,000 to its recent $74,000 peak. Notably, this occurred as the Binance BTC Netflow SMA30 entered negative territory.
Kesmeci also notes that, as of March 20, the US equity markets are deeply in the red, with bearish pressure increasing alongside volatility. However, the Bitcoin market retains its strength. According to the crypto pundit, the growing demand for Bitcoin stands as a fitting explanation regarding the flagship cryptocurrency’s apparent independence.
Bitcoin Market Overview
As of press time, Bitcoin is valued at approximately $70,647, reflecting a 0.54% growth since the last 24 hours. On the weekly scale, however, the world’s leading cryptocurrency has deviated negatively by a slight 0.3% from its past value.
Meanwhile, data from SoSoValue shows that US Bitcoin spot ETFs are currently running at a cumulative netflow of $56.28 Billion as of March 19. Surprisingly, an initially positive week turned red on March 18, with US Bitcoin spot ETFs recording about $162.52 million in outflows, followed by an additional $90 million on 19th March.
Featured image from iStock, chart from Tradingview
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