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Recent on-chain data suggests that Bitcoin (BTC) whales may be preparing for a potential rally, as Binance BTC withdrawals have seen a notable spike. Additionally, rising stablecoin inflows to exchanges indicate growing buy-side liquidity, reinforcing the market’s bullish sentiment.
Bitcoin Whales Foreseeing Major Rally Ahead?
According to a recent CryptoQuant Quicktake post by contributor Amr Taha, Bitcoin whales recorded one of the largest BTC outflows from Binance this month. The chart below shows that nearly 4,500 BTC were withdrawn on June 16.
Bitcoin whales are defined as wallet addresses with significant BTC holdings. Past data suggests that such large withdrawals from whales have typically preceded price rallies, as they reflect a reduction in BTC exchange reserves, leaving fewer coins readily available for trading.
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Beyond this large-scale withdrawal, on-chain data also reveals dwindling BTC inflows to exchanges from both whales and retail investors. This combination of major outflows and low deposits could be laying the groundwork for a Bitcoin “supply crunch.”
For the uninitiated, a Bitcoin supply crunch occurs when the available BTC on exchanges declines sharply, reducing the immediate supply for buyers. This happens when long-term holders or whales withdraw BTC to cold storage, creating upward pressure on price as demand outpaces liquid supply.
Stablecoin Inflows Witness Sharp Increase
In parallel with Bitcoin’s exchange exodus, stablecoin inflows to Binance have surged in recent days. Notably, over $400 million in stablecoins flowed in on both June 13 and 15.
Historically, such significant stablecoin inflows have been linked to buy-side liquidity preparation. In other words, large investors appear ready to deploy capital into crypto assets like BTC, reflecting renewed risk appetite. Taha concluded:
The aggressive Bitcoin withdrawals and concurrent stablecoin deposits create a supply-demand asymmetry. With fewer BTC available on exchanges and growing liquidity to fuel buys, the stage is set for a potential price breakout.
Meanwhile, additional exchange data supports the case for further upside in BTC. For example, the coin has been experiencing consistently negative funding rates on Binance – often a precursor to short squeezes.
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At the same time, Bitcoin’s long-term holder Realized Cap recently surpassed $20 billion, underscoring rising confidence among seasoned investors. In addition, despite the ongoing BTC rally, retail participation remains relatively low, suggesting further room for growth.
However, short-term holders are showing signs of caution, increasing their selling amid recent price corrections. At the time of writing, BTC is trading at $105,575, down 1.0% in the past 24 hours.
Featured image from Unsplash, charts from CryptoQuant and TradingView.com
