[Analysis] "December Binance whale inflows plunge… selling pressure eases"

Global cryptocurrency exchange Binance has seen a sharp drop in whale (large investor) funds flowing in this month. Analysts say selling pressure on Bitcoin (BTC) is easing.

Darkfost, a CryptoQuant contributor, said on the 24th (local time) via CryptoQuant, "Whale funds flowing into Binance decreased from $7,880,000,000 last month to $3,860,000,000 this month," adding, "the inflow has effectively been halved in just a few weeks." Darkfost said, "This is an important signal in terms of market dynamics," and "It means that the amount of Bitcoin deposited to Binance by large investors with significant market influence has greatly decreased."

Darkfost said selling pressure on Bitcoin has decreased this month. Darkfost analyzed, "A decrease in whale inflows to Binance generally means that selling pressure is easing," adding, "It means that immediate sell volume has reduced in the short term, which can be interpreted as a relatively positive signal in terms of short-term market supply-demand balance."

However, it pointed out that "this trend does not rule out the possibility of intermittent large-scale fund movements." Darkfost said, "Individual whale inflows can still impact the market," and reported that "a surge of $466,000,000 in inflows was observed recently in the investor segment holding 100~10,000 Bitcoins."

It added, "(A whale's) sudden movements can affect volatility at any time even amid an overall slowdown," while noting that "the trends observed in the current environment are overall constructive."