Binance Bitcoin Holdings Rise to 667,500, Highest Since February
Summary
- Binance’s Bitcoin (BTC) holdings rose to about 667,500 BTC, the highest level in six months.
- A CryptoQuant on-chain analyst said a rise in Bitcoin holdings on centralized exchanges can indicate an increase in supply available for trading in the market.
- The analyst said that if Binance’s Bitcoin (BTC) holdings keep rising alongside weaker Bitcoin prices or higher exchange inflows, it could become a stronger signal of selling pressure.
Forecast Trend Report by Period
Binance’s Bitcoin holdings have risen to about 667,500 BTC, the highest level since February.
CryptoQuant Quicktake said on Aug. 11 that on-chain analyst Arab Chain estimated Binance’s Bitcoin reserves increased from about 616,000 BTC in April to more than 667,500 BTC recently. Bitcoin was trading near $64,000.
A rise in Bitcoin held on centralized exchanges is generally interpreted as a sign that more supply is available for trading in the market. If investors transfer Bitcoin to exchanges and sell it, that could add downward pressure on prices.
Still, an increase in exchange reserves alone does not necessarily mean selling pressure is building. Bitcoin balances on exchanges can also rise because of liquidity reallocations, changes in custody arrangements or trading strategies.
If Binance’s Bitcoin holdings continue to increase while Bitcoin prices weaken or exchange inflows rise, that would carry greater weight as a signal of selling pressure, Arab Chain wrote.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.