The market dominance of Bitcoin on Binance has increased tenfold, however, the cash flow into the exchange signals short-term selling pressure.
The growth of the BTC network and the Stock-to-Flow ratio have sharply declined, weakening long-term demand and the narrative of BTC scarcity.
The Spot trading volume of Bitcoin [BTC] on Binance has surged, almost encompassing the total volume on most other exchanges.
Indeed, Binance's dominance is more than 10 times that of Coinbase, according to Joao Wedson, founder and CEO of Alphractal.
This reflects an increasingly high concentration of market activity, but notably, BTC is still hovering around $102.6K, showing no clear signs of a new bullish trend.
In the past, similar fluctuations in Spot volume often accompanied price surges; however, relying on a single exchange is too risky. Therefore, the question arises whether this dominance is enough to support Bitcoin's next uptrend.
Source: CryptoQuant
Is THIS a warning signal about increasing sell pressure?
The net cash flow index of Bitcoin (Exchange Netflow) has shifted to a slight positive state, with 5.9K BTC flowing into centralized exchanges on June 22.
This contradicts the data on positive Spot volume. Positive net cash flow often signals an intention to sell, especially in high volatility market conditions.
If inflows continue to exceed outflows, BTC may face short-term downward pressure, despite trading activity on Binance remaining high.
Source: CryptoQuant
Are the BTC 'whales' losing confidence?
The Realized Cap HODL Waves index (1d to 7d) has sharply decreased to 3.548%, down from 8.1% at the beginning of June. This index measures the amount of capital held by short-term investors.
This decline indicates that investors who just bought have taken profits or reduced risks, reflecting a cooling sentiment after a strong price surge.
The exit of this group of short-term investors indicates a decline in short-term trust, especially after BTC was rejected near the $105K level.
Without new cash flow, Bitcoin may struggle to maintain its long-term uptrend.
Source: Santiment
Where are the new users?
The network growth of Bitcoin has decreased to 60.4K new addresses, marking one of the lowest milestones in recent months. This index reflects the number of new addresses joining the network.
This sudden drop indicates a decrease in attracting new users. Although trading volume remains high, the basic level of acceptance is somewhat weak.
If the network activity does not recover, the long-term uptrend of Bitcoin could be threatened. In the past, the stable development of the network has been a source of support for sustainable growth cycles.
Source: Santiment
Does this weaken the narrative of BTC scarcity?
The Stock-to-Flow Ratio index has decreased by 14.28% to 908.89K, reflecting a reduction in scarcity. This index links price growth with the decreasing issuance of BTC.
A decrease in this index indicates that pressure from limited supply is easing, which could reduce long-term bullish expectations. Although this index affects slowly, it plays an important role in market sentiment.
Source: CryptoQuant
Binance's volume is increasing, but the market remains cautious.
The growth in Spot volume on Binance reflects confidence, but other indicators suggest that the overall market picture remains mixed. Cash flow into the exchange, reduced activity of short-term investors, declining network growth, and weakened scarcity all contribute to lowering the growth outlook for the cryptocurrency market.
Therefore, unless new demand and user acceptance quickly recover, Binance's dominance may not be enough to sustain continuous growth.
Source: https://tintucbitcoin.com/khoi-luong-bitcoin-giao-ngay-tang-10x/
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