#Bitcoin is still trading below $120,000 after the US Treasury confirmed it won’t be purchasing the asset. At $118,612, BTC has slipped 4.1% from its recent peak above $124,000. Traders are now debating whether this consolidation phase will fuel a renewed rally or extend the downturn.
Fresh on-chain data spotlights #Binance , the world’s largest Bitcoin exchange by trading volume. According to CryptoQuant analyst CryptoOnchain, the platform just recorded one of the seven biggest average Bitcoin inflows in recent months.
The Mean Inflow metric shows an uptick in BTC being transferred into Binance wallets, potentially signaling intentions to sell, open leveraged positions, or rebalance institutional portfolios. Historically, large inflows tend to indicate Bitcoin moving from private wallets to exchanges, which can increase sell-side pressure if not met with matching demand.
Binance’s #BTC reserves are climbing, supported by a consistent positive netflow (inflows exceeding withdrawals). Previous instances of this pattern often preceded price swings — especially when whales offloaded holdings or hedged via derivatives. If inflows persist without rising demand, analysts warn of near-term bearish pressure. On the other hand, if buying interest absorbs the inflows, it could create liquidity for the next price move.
Another CryptoQuant contributor, Arab Chain, examined Binance’s Bitcoin Estimated Leverage Ratio (ELR). The ELR fell from its early August peak above 0.27 to around 0.25 before bouncing back. Despite BTC holding near $119K, leverage has cooled off, likely due to liquidations of risky positions or profit-taking after recent gains.
Arab Chain noted that declining leverage during a steady price phase suggests that market stability is being supported by liquidity inflows rather than speculative bets.