This is a historic moment. While Bitcoin is currently testing its all-time high, the number of BTC inflows to Binance is collapsing, reaching the lowest levels observed during this entire market cycle.
The monthly average of Bitcoin sent to Binance is set around 5 300 BTC, and the latest daily value is hovering around 4 600 BTC. These are levels we have not seen since the depths of the bear market, which makes the situation particularly striking given the current bullish price action.
Traditionally, analysts monitor outflows to gauge long-term investor sentiment.
However, focusing on inflows can actually provide a more direct and less ambiguous signal, as they are less impacted by internal transfers or exchange-side wallet reorganizations that centralized platforms often carry out.
Inflows represent a much clearer view of potential sell-side pressure. When Bitcoin is transferred from a custodial wallet to an exchange, it is usually with the intent to sell or at least to get ready to do so
While there may always be edge cases or noise, the vast majority of these transactions should be interpreted as signs of potential distribution activity.
Given Binance's size and dominant share of broader exchanges market, the fact that so few BTC are being sent there suggests that investors are not eager to take profits at current price levels.
On the contrary, it signals a strong conviction in the long-term potential of Bitcoin, and a general unwillingness to part with holdings even as the price approaches record highs.
Written by Darkfost
