Binance Sees Persistent Bitcoin Outflows as Price Holds Near $90,000, Signal of Long-Term Bullish Sentiment
2024-11-16

On-chain data shows that there have been persistent outflows from leading cryptocurrency exchange Binance, even as the price of Bitcoin hovers around the $90,000 mark, down from a new all-time high above $93,000.
As highlighted by a recent CryptoQuant Quicktake post, Binance’s Exchange Netflow has consistently registered negative values over the past few weeks. The metric tracks the net movement of Bitcoin into or out of exchange wallets, with a negative value indicating a net outflow, suggesting that holders are opting to store their Bitcoin in self-custodial wallets, a bullish sign for the long-term outlook of the cryptocurrency.
Net outflows are interpreted as a bullish signal given Bitcoin’s limited supply, as more coins being stored on-chain suggests available supply on exchanges is dropping, leading to potential price increases if demand remains or increases.
Source: CryptoQuant
A chart provided by CryptoQuant illustrates the significant negative spikes in Bitcoin Exchange Netflow for Binance earlier this month, coinciding with the recent rally. These large-scale accumulation moves likely contributed to the price surge.
The outflows come as the spot Bitcoin exchange-traded fund (ETF) offered by the world’s largest asset manager BlackRock, the iShares Bitcoin Trust (IBIT), has seen over $3 billion of inflows over the past five days.
As CryptoGlobe reported, the spot Bitcoin ETFs launched in the United States earlier this year have seen their total assets cross the $90 billion mark after seeing a $6 billion ump in a single day, and are now over three-thirds of the way of surpassing gold ETFs in assets.
That’s according to senior Bloomberg ETF analyst Eric Balchunas, who on the microblogging platform X (formerly known as Twitter) pointed out that spot Bitcoin ETFs’ $6 billion jump in a day came with $1 billion of inflows, and $5 billion of market appreciation amid a significant BTC price rise.
Notably, cryptocurrency investment products have also been seeing significant inflows, bringing in $1.98 billion in the week after Republican candidate Donald Trump won the US presidential elections.
According to CoinShares latest Digital Asset Fund Flows report, the inflows couple with the cryptocurrency market rally have pushed the total assets under management of crypto investment products to a $116 billion high.
The report details that Bitcoin-focused investment products saw $1.79 billion inflows over the past week, while Ethereum-focused products saw $157 million inflows.
Featured image via Unsplash.