Bitcoin reserves on Binance, the world’s largest crypto exchange by trading volume, have dropped to levels not seen since January 2024, coinciding with a recent surge in the cryptocurrency’s price. If current trends continue, Bitcoin could see a massive 90% price increase in just months.
Binance recently reported a reserve of below 570,000 BTC, its lowest level since January. This typically signals that investors are moving their assets to cold storage and are bullish about Bitcoin’s long-term price prospects. The last time reserves dropped this low was also in January, followed by a surge in March to an all-time high.
According to CryptoQuant contributor Darkfost, periods of withdrawals can be a sign of positive momentum building in the market. Bitcoin dominance is currently hovering below 60%, a level that some analysts believe could signal a wider rotation toward other crypto assets.
Bitcoin’s price has struggled to hold above $100,000 since breaking it in December. Analysts predict that liquidity will return after Christmas, which may push prices above $105,000. Chief analyst at Bitget Research, Ryan Lee, notes that post-Christmas market activity typically picks up again, with funds positioning for sectors that might benefit from the upcoming inauguration.
Source: https://cointelegraph.com/news/binance-bitcoin-reserve-plummet-what-that-means-for-btc-price-crypto-analyst