Bitcoin (BTC) has seen record buying activity as BTC/USD returns to six-week highs.
The latest data from on-chain analytics firm CryptoQuant shows more BTC leaving major exchange Binance in a single day than ever before.
Binance finishes the day 55,000 BTC lighter
Despite warnings that a macro bottom may not yet have occurred, Bitcoin investors have wasted no time snapping up BTC above $20,000.
The past two days’ gains delivered a sea change to exchange user behavior, with BTC balances dropping across the board.
As the largest exchange by volume, Binance was of particular interest, and saw a net position change of over 55,000 BTC on Oct. 26 — the most ever.
The outflows beat all other buying sprees, including the $17,600 dip in June this year and the March 2020 crash.
CryptoQuant contributor Binh Dang further noted that derivatives platform outflows were setting multi-month records.
“In 1 year from now, yesterday was the day with the biggest number of coins moved out of the derivatives exchange: 71,579 Bitcoin,” he wrote in one of the firm’s Quicktake posts, noting that internal moves could have made up some of the total.
“That number contributes to bringing the outflow of BTC from derivatives exchanges to 94,024 Bitcoin. This is the most significant number since July. This amount has helped drastically reduce the total reserves on derivatives exchanges after spiking since Bitcoin’s price dropped in May.”
Dang added that such derivatives outflows had once accompanied decreased sell-side pressure on Bitcoin more broadly.
While there is still a lack of on-chain confirmation of Bitcoin bottoming, looking back at the history of late 2018, we will see the difference, he concluded.
In the strongest price declines in the two years before 2020, and 2021, each appearance of a strong downtrend on derivative reserve showed a similar decrease in selling pressure. How about this time?
Gains have not changed Bitcoin bear market
Turning to exchanges’ stock of BTC, from Oct. 25 through Oct. 26, the major platforms tracked by CryptoQuant saw around 42,500 BTC in net outflows.
Related: Why is the crypto market up today?
Unlike with Binance, cross-platform position change did not set a global record, with June remaining higher.
Summing up, fellow CryptoQuant contributor IT Tech warned that the good times may not last long. The United States Federal Reserve meeting on interest rates could deliver an unwelcome pivot.
For me it could mean that is some kind of fake pump before FOMC meetings 2.11.2022, he wrote in a further Quicktake.
DXY is going down and helped S&P500 and Bitcoin grown up. Be careful because we are still in Bear market and one small pump not changed this.
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