- Data: Bitcoin STHs deposit far less BTC to Binance than other exchanges lately
- Suggests lower sell pressure on Binance; may be viewed more for holding
- Binance BTC balance high (~570k), though net 30-day outflows hint at self-custody
Bitcoin traders appear to treat Binance differently from other major crypto exchanges currently. This pattern signals a potential shift in market behavior and platform usage, according to recent analysis published by CryptoQuant.
The on-chain analytics firm found that Short-Term Holders (STHs) – defined generally as wallets holding Bitcoin for less than 155 days – are sending significantly less BTC to Binance compared to other trading platforms. This trend could influence Bitcoin’s near-term price movement as investors possibly recalibrate their trading or holding strategies between exchanges.
CryptoQuant’s data indicated STHs deposited only 6,300 BTC onto Binance over a tracked period. This represents a sharp drop compared to the average 24,700 BTC sent by STHs to other exchanges during the same timeframe.
On the other hand, the comparatively higher BTC inflow to other exchanges hints at a possible shift in where active traders prefer to seek liquidity or execute trades right now. While Binance generally maintains the highest reported overall trading volume globally, its lower STH inflows currently could suggest some market participants view it more as a stable holding location (“Bitcoin bank”) rather than the primary hub for active, short-term trading decisions.
These diverging flow trends highlight potentially evolving market dynamics that could influence Bitcoin’s price action in the near term.
Related: Bitcoin $100k FOMO Returns: Santiment Warns It Could Be a Bull Trap
Binance’s Large BTC Balance Persists During Market Shifts
Despite relatively lower STH inflows recently, Binance continues to hold a massive amount of Bitcoin on behalf of its users, reflecting its large market share.
According to separate data from Coinglass tracking exchange balances, Binance’s reported BTC balance (around 569,561 BTC) remains second only to Coinbase Pro among major centralized platforms. This large balance suggests many users continue to trust Binance as a primary platform for custodying their Bitcoin.
Looking at specific timeframes adds more nuance. In the daily view, Binance’s net BTC flow (+1,698 BTC) appeared relatively stable recently compared to outflows on other days.
However, Bitfinex saw a much larger net inflow over the same 24-hour period (+11,755 BTC), indicating potentially more significant active trading or large deposit activity occurring on that specific platform during that window.
Contrasting 7-Day and 30-Day Flow Trends
Binance’s net BTC balance change over the past 7 days was also positive (+968 BTC). This means, on balance for the week, users still deposited slightly more Bitcoin to Binance than they withdrew.
In contrast, major counterparts Coinbase Pro (-7,792 BTC) and Bitfinex (-7,524 BTC) showed substantial net outflows over the same 7-day period. This implies traders moved significant amounts of BTC away from those platforms over the past week, possibly to self-custody or perhaps onto other exchanges or venues.
Related: Changpeng Zhao (CZ) Burns Nearly $4 Million in Altcoins He Didn’t Ask For
Over a longer 30-day timeframe, however, Binance also experienced net outflows from its reported balance. This means some Bitcoin did move off the exchange over the month despite its weekly stability.
The general trend of net declines in BTC held across most major exchange platforms over the past 30 days hints that more Bitcoin may be moving into private, user-controlled wallets (self-custody).
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
