Bitcoin remained below $120,000 after the U.S. Treasury Department stated that it would not be purchasing it.
BTC is currently priced at $118,612, down 4.1% from a record high of over $124,000 this week. The market is considering whether this period of consolidation will resume an upward trend or continue to decline.
The latest blockchain statistics highlighted Binance, the world's largest Bitcoin exchange by volume.
CryptoQuant author CryptoOnchain reports that the exchange has witnessed one of the seven largest average Bitcoin inflows in recent months.
The average inflow indicator shows a higher volume of BTC moved to the Binance wallet, possibly for sale, leveraging, or institutional portfolio adjustments.
CryptoOnchain noted that large inflows often mean that Bitcoin is moving from private wallets to trading accounts on the exchange. Without corresponding buying demand, an increase in supply could create short-term selling pressure.
Binance's Bitcoin reserves are increasing due to a positive trend of net inflow, where inflows exceed outflows. Similar trends have preceded price volatility, especially when large holders sell assets or hedge with derivatives.
If the inflows continue without an increase in demand, the analyst predicts a rising short-term negative risk.
If these inflows generate significant buying interest, they could provide liquidity for price movement. The question is whether the BTC held on the exchange is increasing due to selling or smart positioning ahead of market events.
Arab Chain, another author from CryptoQuant, studied the ELR of Bitcoin on Binance. The open interest to exchange reserves ratio has decreased since the beginning of August, when it exceeded 0.27, to approximately 0.25 before the recovery.
Despite prices remaining around $119,000, leverage has decreased, indicating the liquidation of high-risk positions or profit-taking after strong price surges.
Arab Chain stated that the lower leverage ratio during price stability indicates that market support is coming from liquidity rather than speculation.
#BTC #MarketTurbulence #ETHTreasuryStrategy $ETH $XRP