Bitcoin is close to reaching its historical peak, but cash flow into Binance has dropped to the lowest level in the cycle, showing the resilience of long-term holders.
Although the capital inflow into the largest exchange Binance has decreased significantly, creating positive signs for long-term holders, indicators such as liquidity and leverage ratio warn of strong volatility that may occur in the short term.
MAIN CONTENT
Bitcoin cash flow into Binance has dropped to a record low in the cycle, reflecting the strength of long-term holders.
High leverage in the derivatives market signals significant short-term price volatility risk.
Stablecoin outflows from the exchange reduce purchasing power, negatively affecting the natural growth potential of the cryptocurrency market.
Why has Bitcoin almost reached its ATH but the cash flow into Binance has decreased?
Based on Darkfost's analysis, a significant drop in Bitcoin influx to Binance has occurred, reaching its lowest point in the current cycle, even as BTC price nearly hit 111,970 USD on 09/07/2025. This is a sign that whales and large investors are not selling much, showing strong confidence in the long-term trend.
The amount of Bitcoin entering the largest exchange has significantly decreased, indicating that holders are firmly holding their assets, preparing for the market's next move.
Darkfost, CryptoQuant analyst, 09/07/2025
Statistical data shows that the average Bitcoin cash flow into Binance is only 3,190 BTC/day, much lower than the average of 5,390 BTC, which often means investors do not want to sell. In contrast, derivative liquidity surged with 229.28 million USD being liquidated in the last 24 hours, including nearly 7.8 million USD in short positions liquidated in just one minute on Binance, demonstrating a very strong short squeeze effect.
Will the cryptocurrency market explode or move sideways?
The liquidation heatmap shows that the price zone of 110,000 USD has just been swept clean of liquidity, while the zone of 112,600 USD also attracts cash flow and may continue to attract traders in the near future. According to reports from Coinglass, recent liquidity pressure has created characteristic short-term fluctuations in the Bitcoin market.
According to CryptoQuant data, the estimated leverage ratio of Bitcoin has continuously increased since April, especially surging in early July when BTC price tested the 108,000 USD threshold. This reflects the high-risk acceptance mentality of investors in the derivatives market, which can lead to liquidity squeezes similar to those just experienced.
The increase in leverage along with liquidity prone to being 'swept' creates a volatile trading environment, requiring investors to be highly vigilant.
Phil Smith, Market Strategy Director, CryptoQuant, 07/2025
Stablecoin outflows from the exchange have continuously occurred over the past 14 days, according to CryptoQuant, diminishing purchasing power on cryptocurrency exchanges. This warns that the market is not yet ready for a natural price increase, requiring investors to closely monitor. The contradiction between holders not wanting to sell and the lack of new cash flow further reinforces the potential for short-term volatility.
Advice for long-term investors and short-term traders?
Although the cash flow turnaround data is positive for long-term holders, it signals high volatility risk in the derivatives market for short-term traders. Experts emphasize the importance of patience and caution during this period. Investors should focus on risk management and not get swept up in strong liquidity waves and high leverage.
Current State Index Meaning for Investors Bitcoin cash flow into Binance Decreased to 3,190 BTC/day (the lowest level of the cycle) Holders remain firm, not selling much Estimated leverage ratio Increased sharply since April, surged in July High short-term volatility risk Stablecoin outflows from the exchange Continuous negative flow for 14 days Reduced purchasing power, hindering market growth
Frequently Asked Questions
Why is the decrease in Bitcoin cash flow into Binance a positive sign?
This indicates that large investors and whales do not want to sell, showing long-term confidence in Bitcoin.How does high leverage affect the market?
High leverage creates liquidity that is easily swept, causing strong volatility and increasing risks for short-term traders.What does the outflow of stablecoins from the exchange mean?
The decline of stablecoin on the exchange has reduced purchasing power, making it difficult for the market to have sustainable upward momentum.What should traders do during this volatile period?
Traders need to manage risks tightly and avoid overtrading when the market is highly volatile.What should long-term holders do?
One should be patient and not panic sell when prices fluctuate sharply according to liquidity signals.
Source: https://tintucbitcoin.com/bitcoin-chiu-ap-luc-don-bay-cao/
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