The world's largest cryptocurrency exchange Binance at the end of the week registered a record daily inflow of BTC in its history, suggesting that investors storing BTC so far in external, private wallets may want to liquidate their reserves soon:
- Bitcoin is still trading near $16,500 at the end of the week, Ethereum costs $1,220. Most altcoins are under pressure. The standout gainer is Algorand, which is among one of the sponsors of the FIFA World Cup, causing its price to record a 7% increase today due to the upcoming games;
- Most long-term investors use hardware wallets, making such a large influx of Bitcoin on exchanges a cause for concern about the capitulation of the group so far showing the greatest level of conviction and reluctance to get rid of their cryptocurrencies;
- Investors fear further declines amid the 'domino effect' ignited by the FTX exchange's bankruptcy and the industry's deepening internal problems. Binance indicated that the exchange's assessment is that such large movements remain unclear and unjustified. BTC inflows are the highest since the end of 2018 and significantly beat all previous months of 2022, including the Luna/Terra implosion in May:
Binance outflows recorded a giant leap reminiscent of the capitulation from the bottom of the 2018 bull market. Data from the on-chain analytics platform CryptoQuant shows that nearly 50,000 BTC flowed into Binance's wallet on November 18. Source: CryptoQuant 
Binance giela BTC reserves climb to yearly highs. Today's Binance balance sheet gives an inflow of more than 100,000 BTC with a large outflow of nearly 50,000 bitcoin. Source: CryptoQuant
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Open account Try demo Download mobile app Download mobile app- BTC inflows to Binance may also indicate that the exchange currently enjoys the highest level of investor confidence, with investors moving funds to it en masse from other exchanges like Crypto.com and Kraken. If this is the case, the 'bearish' theory of a possible capitulation might not come true.
Bitcoin chart, H1 interval. the recent price reactions of Bitcoin and the Algorand cryptocurrency, we see a bullish divergence. The price of Algorand has strengthened while BTC has been declining recently. If Algorand hold the trend line it has a chance to continue to record 'speculative gains' in view of the beginning of the World Cup. Source: xStation5
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