Binance experienced a significant shift in liquidity during the past month. On-chain data indicates inflows totaling $7 billion, alongside outflows of $1.5 billion worth of Bitcoin (BTC).
This movement presents a varied outlook; some market observers interpret it as a positive indicator for a new rally, while others caution that the market may not yet be prepared for upward momentum.
Stablecoin Surge and Bitcoin Outflows Suggest Accumulation
Recent on-chain data, shared by quant trader CryptoOnchain, revealed that Binance recorded one of its most robust liquidity months in recent history. The exchange saw inflows exceeding $5 billion in Tether (USDT) and $2 billion in USD Coin (USDC) into its reserves. The analyst suggests this is a sign of sidelined capital awaiting entry points into the market.
“This massive accumulation of ‘dry powder’ indicates that vast capital is parked on the sidelines, with traders waiting for buying opportunities,” CryptoOnchain wrote.
Conversely, Binance's Bitcoin and Ethereum (ETH) balances decreased substantially. This included a $1.5 billion outflow of BTC and approximately $500 million withdrawal of ETH throughout October. Historically, such asset movements have correlated with long-term holding patterns, as investors transfer assets to private wallets. This action reduces the available supply of BTC for sale, tightening it at a time when purchasing power is increasing.
The analyst also noted a significant flow of capital into altcoins beyond ETH, leading to the belief that an "explosive" altcoin season is imminent.
However, not all market participants share the view that this situation automatically points to a rally. Another market watcher, COINDREAM, indicated that Binance's Bitcoin reserves have actually increased, suggesting that recent deposits have outnumbered withdrawals. This condition can sometimes precede short-term price declines. They also highlighted that weak buy volume during recent price drops implies that many traders remain hesitant to "buy the dip."
Weak Prices but Strong Foundations
CoinGecko data indicates that Bitcoin is currently valued at approximately $107,607. This represents a 2.6% decrease in the last 24 hours and a 12.2% decline over the past month. The asset has lost nearly 14.8% of its value since reaching its all-time high of over $126,000 on October 6.
Bitcoin's recent price movement followed U.S. President Donald Trump's latest remarks on tariffs and on-chain data showing large "OG" wallets transferring approximately $1.8 billion worth of BTC to exchanges, likely for liquidation.
Nevertheless, analysts such as Daan Crypto Trades have observed that the flagship cryptocurrency is holding near key support levels around $107,000, with "bounces getting weaker." This suggests that the market may be approaching an inflection point.
Furthermore, CoinGlass analyzed historical data and found that following a "red October," Bitcoin prices have sometimes experienced further declines, as seen in 2018 when prices fell 36% the subsequent month. However, current market conditions differ significantly. Increased institutional involvement and capital inflows, such as Binance's $7 billion, suggest that the foundational elements for renewed strength may be developing.