Binance’s reserves have plummeted to an all-time low, sparking concerns about a potential bull run in the cryptocurrency market. The move has left analysts wondering if history is repeating itself, similar to a 90% surge in bitcoin prices last January.
Bitcoin reserves on Binance, the largest exchange, have fallen below 570,000 BTC, a level not seen since January. This decrease in reserves often precedes an increase in investor confidence and a return to self-custody, as seen in past instances. Darkfost from CryptoQuant noted that intense withdrawals can signal positive momentum in the market.
Historically, this scenario led to significant price increases for bitcoin. In January 2024, reserves below 570,000 BTC preceded an explosion in prices to $73,679. More recently, a similar decrease in reserves occurred before reaching record highs of $108,300 and then retreating below $100,000.
Crypto traders are divided on the outlook. Some experts predict a bounce back after the holiday season, with bitcoin oscillating between $94,000 and $105,000 this week. Others believe that surpassing 60% dominance could reignite interest in bitcoin and boost the entire crypto sector.
The market’s reaction to Binance’s low reserves remains uncertain, but one thing is clear: bitcoin continues to ride a rollercoaster of prices while maintaining its position as an essential asset. The views expressed in this article are for informational purposes only and should not be taken as investment advice.
Source: https://www.cointribune.com/en/bitcoin-binance-reserves-at-an-all-time-low-a-sign-for-the-next-bull-run