Binance, the leading crypto exchange, recently reached a milestone in its stablecoin reserve. Namely, the exchange’s stablecoin reserve has reached the highest recorded figure in history.
This achievement raised optimism among market participants regarding the increase in Bitcoin and cryptocurrency prices.
Binance Reserve Factor
Darkfost, an analyst at CryptoQuant, an on-chain data provider, brought the recent development to the market’s attention.
The analyst noted that Binance has reached its largest stablecoin reserve, surpassing $31 billion.
For context, Binance stablecoin reserves were only $7 billion in June 2023, which is a far cry from the recent figure.
In fact, $31 billion represents a nearly five-fold increase since June 2023. Typically, an increase in stablecoin reserves indicates an increase in buying pressure in the market.
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Therefore, Darkfost points out that investors are still actively positioned on the market.
As more investors show confidence in the market, cryptocurrency prices are expected to bounce back and rise.
Also, the expansion of the stablecoin reserve indicates that Binance is becoming more and more dominant in the market. Further expansion of the stock market could indicate changes in the structure of the industry.
The exodus of Bitcoin on the stock exchanges shows signs of growth
Another key metric that signals bullish signs in the crypto market is the large volume of Bitcoin (BTC) leaving exchange platforms.
CryptoQuant analyst AxelAdlerJr stated in a recent Quicktake post that Bitcoin inflows to exchanges have reached an extremely low level.
According to the analyst, approximately 30,000 daily BTC deposits have been recorded in the past few weeks.
This value is similar to the record low values of 2016, indicating a large trend of holding Bitcoin in personal wallets.
In contrast, the 10-year average is approximately 90,000, and the peak of this cycle reached 125,000 daily deposits.
At the time of this peak, BTC reached the “bullish” level of $66,000.
AxelAdlerJr explained that users send fewer coins to trading platforms when they are not usually preparing to sell.
Instead they prefer to keep their Bitcoins in personal wallets. The analyst noted that Bitcoin saw a big spike when the last time deposit numbers were this low.
Therefore, Bitcoin could reach new highs if it follows a similar trend.
He, however, emphasized that this trend does not guarantee a rapid rise in prices, but indicates a potential shortage of Bitcoin in the spot market.
Bitcoin price, ETF market outlook and future projections
Meanwhile, the price of Bitcoin is currently showing signs of recovery. At the time of writing, the price of BTC is trading at $96.618, a slight increase of 2.07% in the last 24 hours.
However, 24-hour trading volume rose more than 54% to $56.9 billion, indicating renewed investor interest.
Despite the renewed optimism of retail investors, the spot Bitcoin exchange-traded fund (ETF) market is still seeing large outflows.
Data from Farside Investors shows outflows of $242.3 million on Thursday, January 2. BlackRock’s IBIT recorded the largest outflows, amounting to $332.6 million.
Despite this, market analysts have given optimistic forecasts for the price of Bitcoin.
Investment manager Bitwise recently predicted that Bitcoin will reach $200,000 in 2025, driven by growing ETF inflows and institutional adoption.
