Bitcoin set a new all-time high (ATH) yesterday, reaching $124,474 on Binance before stabilizing around $118,000 at the time of writing. Meanwhile, BTC reserves on Binance have surged significantly, raising concerns about a potential price correction.
Bitcoin Reserves Surge on Binance: Is It Time to Worry?
According to a post on CryptoQuant Quicktake by Arab Chain contributors, Bitcoin reserves on Binance have surged in recent months. This exchange holds the largest BTC reserves, supported by high liquidity and the largest trading volume in the market.
Since the end of July, BTC reserves on Binance have reversed the previous downward trend, increasing to 579,000 BTC. Arab Chain has shared the following chart illustrating how BTC reserves—after a period of scarcity—have reversed the trend and are currently signaling a short-term warning.
Notably, BTC reserves on Binance had previously decreased by about 50,000 to 60,000 BTC, down 9% to 10% from the 2024 peak to the lowest point in July 2025. Recently, reserves have recovered slightly, increasing from 25,000 to 30,000 BTC, equivalent to an increase of 5% to 6%.
Despite this recovery, BTC reserves remain significantly lower than the peak at the end of 2024, indicating that the structural scarcity has not completely disappeared. Arab Chain has highlighted two potential reasons for the recent surge in reserves.
Firstly, profit-taking or short-term supply may increase as traders—including whales and market makers—send BTC to exchanges. They may do so to sell a portion of their holdings or use digital assets as collateral in the derivatives market.
Secondly, liquidity for BTC may increase as demand rises, leading to liquidity being added to funds. Market makers may also rebalance their portfolios to help balance price discrepancies. The analyst concludes:
In fact, if reserves increase daily or weekly alongside high positive funding rates and an increasing number of open contracts, the likelihood of a short-term correction will rise. However, if reserves stabilize or decrease quickly, this indicates a return of scarcity and the upward trend will continue.
Is BTC's Price Surge Losing Momentum?
BTC has slightly decreased from its recent ATH, currently trading above $118,000, signaling a short-term price correction. Some analysts warn that this could indicate the leading cryptocurrency is losing momentum.
In addition to increased trading reserves, the flow index from whales to the Binance exchange also shows increasing selling pressure. The surge in distribution from Binance miners further reinforces this signal.
However, some analysts remain cautiously optimistic. Axel Adler notes that the current market structure of BTC makes the likelihood of a strong price correction low. At the time of writing, BTC is trading at $118,464, down 0.8% in the past 24 hours.