Binance saw a dramatic shift in liquidity in the month just ended, with on-chain data showing $7 billion in inflows and $1.5 billion worth of Bitcoin (BTC) leaving the exchange.
The movement paints a mixed picture, with some observers seeing it as a bullish setup for a new rally, while others are warning that the market may not yet be ready to move higher.
Stablecoin Surge and Bitcoin Outflows Signal Accumulation
Fresh on-chain data shared by quant trader CryptoOnchain revealed that Binance recorded one of its strongest liquidity months in recent memory. The exchange saw more than $5 billion in Tether (USDT) and $2 billion in USD Coin (USDC) flowing into its reserves, something the analyst says is a sign of sidelined capital waiting for entry points.
“This massive accumulation of ‘dry powder’ indicates that vast capital is parked on the sidelines, with traders waiting for buying opportunities,” CryptoOnchain wrote.
In contrast, Binance’s Bitcoin and Ethereum (ETH) balances shrank sharply, with a $1.5 billion BTC outflow and about $500 million ETH withdrawal through October. Historically, such movements have matched up with long-term holding patterns, as investors transfer assets to private wallets. This behavior reduces the amount of BTC available for sale, tightening supply at a time when buying power is rising.
The analyst also noted that a significant portion of capital is flowing into altcoins outside of ETH, leading him to believe that an “explosive” alt season is on the horizon.
Yet, not everyone agrees that the setup automatically points to a rally. Fellow market watcher COINDREAM noted earlier today that Binance’s Bitcoin reserves have actually increased, suggesting there have been more deposits than withdrawals recently, a condition that sometimes comes before short-term price drops. They also pointed out that weak buy volume during recent declines means that many traders are still hesitant to “buy the dip.”
Weak Prices but Strong Foundations
CoinGecko data shows that Bitcoin is currently worth about $107,607. This is down 2.6% in the last 24 hours and 12.2% in the past month. The asset has lost almost 14.8% of its value since its all-time high of over $126,000 on October 6.
BTC’s latest came shortly after U.S. President Donald Trump’s latest tariff comments and on-chain data showing large “OG” wallets moving roughly $1.8 billion worth of BTC to exchanges, likely for selling.
Still, analysts like Daan Crypto Trades have pointed out that the flagship cryptocurrency remains near key support around $107,000 with “bounces getting weaker,” suggesting the market could be nearing an inflection point.
Furthermore, CoinGlass looked at historical data and found that after a “red October,” Bitcoin prices have sometimes dropped even more, like in 2018 when they fell 36% the next month. But things are very different today. Institutional involvement and capital inflows, like Binance’s $7 billion, suggest that the groundwork for renewed strength may be taking shape.
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