Binance, a leading crypto exchange, recently reached a milestone in stablecoin reserve. Notably, the exchange’s stablecoin reserve hit the highest-recorded figure in history.
This achievement has raised optimism among market participants about bullish movement in the price of Bitcoin and cryptocurrencies.
The Binance Reserve Factor
Darkfost, an analyst at CryptoQuant, an on-chain data provider, brought the market’s attention to the recent development.
The analyst noted that Binance has reached its highest stablecoin reserve, topping $31 billion.
For context, Binance stablecoin reserves were only $7 billion in June 2023, a far cry from the recent figure.
In fact, the $31 billion represents a nearly fivefold increase since June 2023. Typically, an increase in stablecoin reserves indicates that buying pressure in the market is increasing.
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Therefore, Darkfost pointed out that investors are still actively positioned in the market.
As more investors show confidence in the market, crypto prices are anticipated to rebound and move higher.
Also, the stablecoin reserve expansion indicates that Binance is becoming increasingly dominant in the market. The exchange’s further expansion could indicate shifts in the industry structure.
Bitcoin Exodus on Exchanges Proves the Bullish Signs
Another key metric signaling bullish signs in the crypto market is the large amount of Bitcoin (BTC) leaving exchange platforms.
CryptoQuant analyst AxelAdlerJr stated in a recent Quicktake post that the Bitcoin inflows to exchanges have hit an extremely low level.
According to the analyst, roughly 30,000 daily BTC deposits were recorded in the past few weeks.
This value is similar to the record lows of 2016, indicating a large-scale trend of Bitcoin held in personal wallets.
In contrast, the 10-year average is approximately 90,000, and the peak of this cycle reached 125,000 daily deposits.
At the time of this peak, BTC reached the “bullish” mark of $66,000.
AxelAdlerJr explained that users send fewer coins to trading platforms when they are usually not preparing to sell.
Rather they prefer to keep their Bitcoin in personal wallets. The analyst noted that Bitcoin hit a major rally the last time deposit figures were this low.
Thus, Bitcoin could hit new highs if it follows a similar trend.
He, however, emphasized that this trend doesn’t guarantee a swift price upswing, but points to a potential shortage of Bitcoin on the spot market.
Bitcoin Price, ETF Market Outlook and Future Projections
Meanwhile, Bitcoin’s price is currently showing signs of recovery. As of this writing, BTC price was trading at $96,618, up slightly by 2.07% within the last 24 hours.
However, the 24-hour trading volume has increased by over 54% to $56.9 billion, indicating investors’ renewed interest.
Despite retail investors’ renewed optimism, the spot Bitcoin Exchange-Traded Fund (ETF) market is still seeing huge outflows.
Data from Farside Investors shows outflows amounting to $242.3 million on Thursday January 2. BlackRock’s IBIT saw the highest outflows, which amounted to $332.6 million.
Nonetheless, market analysts have raised optimistic forecasts for Bitcoin’s price.
Investment manager Bitwise recently predicted that Bitcoin will reach $200,000 in 2025, driven by rising ETF inflows and institutional adoption.
