Whale funds flocking to Binance… surpass $7.5 billion in one month

Over the past month, whale (large investor) funds flowing into the world's largest cryptocurrency exchange Binance have reached a year-to-date high.

Maartunn, a CryptoQuant contributor, said on the 28th (local time) through CryptoQuant, "Whale funds flowing into Binance over the past 30 days totaled $7.5 billion (about 11 trillion won)," adding, "It's the highest level so far this year." Maartunn said, "Binance is the largest exchange and a key liquidity provider," and "whales tend to move funds when the market becomes unstable or when the (Bitcoin) price approaches key levels."

Maartunn noted that recent whale fund flows are similar to March this year. He said, "At that time Bitcoin fell from about $102,000 to the low $70,000s," and analyzed, "Whales mainly moved funds to exchanges for profit-taking or to manage bear-market risk." He added, "Even now, the 30-day inflow continues to increase, so it is still difficult to say that selling pressure has stabilized."

He also mentioned future volatility. Maartunn said, "(Whale fund flows) mean that the risk zone has not been completely resolved," and stated, "Large sums moving to exchanges act as a 'pressure indicator,' but are not a signal that clearly indicates the timing of a market reversal." He continued, "In previous similar phases, it took about a month for the market to form a local bottom."