Bitcoin reserves held on leading cryptocurrency exchange Binance have dwindled to levels that hadn’t been seen since January of this year, raising prospects of a potential 90% BTC price rise as witnessed earlier this year, when reserves dropped to these levels.
According to analysis published by CryptoQuant contributor Darkfrost, Binance’s bitcoin reserves have fallen to 570,000 BTC in a drawdown that resembles one seen earlier this year, before the price of the flagship cryptocurrency surged to near $70,000 in March.
The firm’s data shows that as reserves on Binance dropped to around 564,000 BTC earlier this month, the price of the flagship cryptocurrency rose to surpass the $100,000 mark for the first time ever, before reserves started moving up slightly and BTC’s price dipped.
Per Darkfrost, the lower reserves on Binance suggest “that investors are confident in bitcoin’s long-term prospects, opting to withdraw their holdings from the exchange rather than keeping them there for selling on the short term.”
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As CryptoGlobe reported, the spot bitcoin exchange-traded funds (ETFs) approved by the U.S. Securities and Exchange Commission (SEC) earlier this year have registered more than $1.5 billion in outflows over the last four days, with data showing these funds’ largest-ever outflow occurred on Dec. 19 as $671.9 million were moved out.
According to data from Farside Investors, spot bitcoin ETFs’ largest-ever daily outflow put an end to a 15-day inflow streak and came amid a significant cryptocurrency market sell-off, which saw the price of BTC drop from over $100,000 to a low below the $93,000 mark before recovering.
The massive exodus surpassed previous record outflows recorded back in May when the price of bitcoin dropped by more than 10% over a week. Since then, these funds have suffered significant outflows of $277 million on Dec. 20, $226.5 million on Dec. 23, and $338.4 million on Dec. 24.
The outflows come at a time when Nasdaq-listed business intelligence firm MicroStrategy has announced the acquisition of an additional 5,262 bitcoin at an average price of $106,662 per BTC, with the purchase costing the firm around $561 million in total.
The Nasdaq-listed business intelligence firm’s total BTC holdings surpassed 400,000 BTC earlier this month after it invested $1.5 billion into the flagship cryptocurrency. The company’s BTC accumulation strategy has inspired other companies to follow suit.
Featured image via Unsplash.
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