CryptoQuant: Sharp Decline In ‘Wholecoiner’ Bitcoin Inflows To Binance Signals Market Shift
In Brief
CryptoQuant analyst reports that declining “wholecoiner” inflows to Binance highlight reduced selling pressure and a broader market shift, as rising Bitcoin prices, diversified exchanges, and DeFi growth redirect large transactions.
Cryptocurrency market analyst Darkfrost from research firm CryptoQuant provided a detailed market update, emphasizing investor behavior and the patterns of “wholecoiner” inflows to the cryptocurrency exchange Binance. According to the report, examining the activity of “wholecoiner” transactions—defined as transfers exceeding 1 BTC—offers insights into both immediate selling pressure and broader market dynamics.
The analysis indicates that Bitcoin inflows to Binance from this category of investors have sharply declined compared to previous years. The annual average currently hovers around 6,500 BTC, a level not observed since 2018. On a shorter timeframe, the weekly average is approximately 5,200 BTC, marking one of the lowest points recorded during the current market cycle.
A notable aspect of this cycle is the divergence in trends compared to prior periods. Unlike previous cycles, where “wholecoiner” inflows increased in tandem with rising Bitcoin prices, the current cycle has seen a steady decline in these large inflows, even as Bitcoin continues to advance in value. This behavior suggests a shift in investor strategy and may have implications for understanding both liquidity and market sentiment at higher price levels.
Beyond indicating a potential decrease in selling pressure from investors holding large amounts of Bitcoin, this trend may reflect a broader structural evolution within the market. As Bitcoin’s price continues to rise, acquiring a full Bitcoin becomes progressively more challenging, which naturally reduces the frequency of transactions exceeding 1 BTC.
Simultaneously, the cryptocurrency ecosystem now provides a wider array of options for trading and holding Bitcoin. The number of exchanges has grown substantially, and the ongoing development of decentralized finance (DeFi) platforms offers alternative channels for liquidity and investment. These factors likely contribute to the redirection of large Bitcoin flows that in the past would have gone predominantly to major exchanges such as Binance, signaling a shift in market behavior and participant preferences.
Bitcoin Holds Near $90K As Selling Pressure Eases
At the time of writing, Bitcoin is trading at $89,875, reflecting a decline of approximately 0.19% over the past 24 hours. During this period, the highest recorded price reached $90,287, while the lowest fell to $87,996, according to CoinMarketCap data.
The Bitcoin market is currently experiencing easing selling pressure following a phase of intense investor activity. This reduction in pressure is apparent from lower deposit volumes to exchanges and a notable recovery in Bitcoin’s price over the past three weeks.
CryptoQuant analysts indicated that sustained low selling pressure could pave the way for a relief rally in BTC. This potential uptrend may be further supported by the Federal Reserve’s recent decision to implement a 25 basis point interest rate cut during the latest Federal Open Market Committee (FOMC) meeting.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
