CryptoQuant, a leading firm specializing in cryptocurrency analytics, has identified a significant and historically notable divergence in the Bitcoin market through its recent evaluation of Binance’s trading data.
The company’s findings reveal that investor actions are pointing toward a pronounced supply shock as Bitcoin hovers near the $91,000 mark.
Based on CryptoQuant’s on-chain metrics, Binance—the largest crypto exchange globally—is witnessing an extraordinary gap between withdrawal and deposit activities. Their research shows that while Bitcoin prices remain stable at elevated levels, investors are reluctant to sell. Instead, they are transferring their holdings off exchanges into private wallets. Experts interpret this trend as an indication of growing confidence in long-term holding (HODLing) rather than engaging in short-term trades.
The data highlights that on December 3rd, the 30-day exponential moving average (EMA-30) for withdrawals from Binance surged to its highest point since May 2018, averaging about 3,100 transactions daily. Conversely, deposits have declined sharply; the 30-day average deposits fell to roughly 320 transactions per day—the lowest since 2017.
CryptoQuant describes this simultaneous peak in withdrawals and trough in deposits—spanning seven and eight years respectively—as emblematic of a classic “supply shock.” Typically when Bitcoin nears record highs, long-term holders move coins onto exchanges aiming to cash out profits. However, current trends display the opposite behavior.
The report explains: “Current supply is being pulled away from order books with minimal new selling pressure present. This pattern suggests investors strongly believe that price discovery remains incomplete.”
This content does not constitute financial advice.