On-chain data shows a net amount of Bitcoin has been flowing into Binance for 10 days now, a potential sign that investors are looking to sell.
Bitcoin Exchange Netflow has remained positive for Binance lately
As noted by CryptoQuant author Darkfrost in an X afterInvestors recently deposited their Bitcoin with Binance. The relevant on-chain metric here is the ‘Exchange Netflow’, which tracks the total amount of BTC currently flowing into or out of the wallets connected to a centralized exchange.
When the value of the metric is positive, it means that holders are transferring a net number of tokens to the platform. Since one of the main reasons investors pour into stock markets is for sales-related purposes, this type of trend can have a bearish implication for the asset’s price.
On the other hand, the fact that the indicator is below zero indicates that withdrawals dominate deposits into the stock market. Such a trend could be a sign that investors are accumulating, which could obviously be bullish for BTC. Here is the chart shared by Darkfrost showing the trend in the Bitcoin Exchange Netflow for Binance, the largest platform by trading volume, over the past ten days:
As shown in the chart above, the Binance Bitcoin Exchange Netflow has remained at a positive level during this period, implying that net inflows have occurred. The size of the inflows varied each day, but there has been an overall increase in the amount of BTC deposited into the exchange over the past ten days.
More specifically, May 16 saw a net 378 BTC enter Binance-linked wallets, while today the same figure has risen to 1,190 BTC. This means that the inflow has more than tripled in the past period. “The largest day recorded over 3,600 BTC on May 18, a relatively high single-day level that clearly illustrates the intensity of the movement,” the analyst said.
The continued deposits have caused Binance’s Exchange Reserve (i.e. the total amount of Bitcoin held on the platform) to be on an upward trend lately.
The chart shows that the Bitcoin Exchange Reserve on Binance reached a low of 616,000 BTC on April 24. The statistic has since risen to 632,000 BTC, indicating a net inflow of 16,000 BTC into the exchange. “When inflows become dominant and consistent on a platform like Binance, this is traditionally interpreted as a potential sell signal,” Darkfrost said.
BTC price
At the time of writing, Bitcoin is trading around $77,400, unchanged from a week ago.