Binance sees a large uptick in the amount of BTC held on their exchange

[dragonvslinux]

Market Analyst from Matrix port states that this isn't great news, and that this generally means that large amounts of Bitcoin may be set to be sold. I'm not sure, but that usually is a big indicator.

If you look at Bitcoin exchange balance for Binance (scroll down, select exchange) you will see there was also also a massive spike back in November last year at around $16K, very much near the lows. But within a month the coins were largely absorbed by the market with some sideways trading. So I wouldn't call it a "big" indicator. Also this uptick in exchange balance isn't really reflected by other exchanges, it's still relatively sideways and at similar lows to the start of the year, despite price increasing by 100%. If anything, taking exchange balances as an "indicator", it remains very bullish for Bitcoin.

Another point made in the article is that the increased amounts of BTC held on exchanges might renew investors confidence following the FTX collapse 'late last year' trying to make it seem like it was forever ago lol.

If you look at all exchange balance (same link) then it's still very low. Lower than it was at $25K and still lower than the FTX capitulation around November 2022. The data on that chart also only goes back to May last year. Another chart I just found shows how overall exchange balances are still at around 2018 levels since declining in 2020. So in the short-term, this Binance deposit is a blip on the radar it seems, and doesn't reflect overall exchange balances either. The fact that exchange balances remains the same/less than when price was around $16K indicates how few sellers there are right now.

[justdimin]

Unfortunately, the mismanagement of clients' funds by these exchanges made this trust shaky, and therefore clients have the right to withdraw their money immediately after the completion of trading and leave the minimum possible amount in those platforms.

People's memory is closer to fish, so during the coming years, especially when Bitcoin breaks the $60,000 barrier, the platforms will find large financial flows, but the problem remains how many platforms will hold up until that time. The winter was severe and it seems that it will continue for a little while, causing some shocks.

I do not think that Binance is one of those places and that is why they are seeing a big increase. There were a lot of FUD and bad news about it going around, and even media worked towards trying to make Binance in a bad place, but none of that worked because nothing wrong about Binance came out, and people trust it.

This is why I believe that we shouldn't really work towards making that work, it should not really be working towards making Binance look bad, but work towards making it known as the most trusted one. If they could do that the nit would be a lot better. People realized this, and they are trusting and investing into it and there is no problem with it anymore, they are going back in after the FUD and making it even bigger.

[crypticj]

That's why we all should hold our crypto on wallets and not on exchanges.
I think exchanges are good for people who are new to crypto and want to buy quickly and easily, but this is dangerous to hold crypto on them.

It's scary that people don't realize that any platform can go down in a blink of an eye and all your crypto could be lost. After all examples we saw I thought it would be pretty obvious.

[kryptqnick]

Some people might move Bitcoin to Binance just for storage, I believe, especially if it's a migration from less reputable accounts. Some feel more comfortable with a centralized company in charge of their money because that's how it works with banks and because that allows restoring access to funds in case you lose your password or something. I wouldn't be so sure that all that money is set to be sold. I honestly don't mind, as long that this is a decision people make consciously, and they are ready to accept the risk of Binance going down at some point or experiencing a sort of hack that will not allow them to fully reimburse their users.

[mv1986]

It could well be for the Binance EARN program, consisting of staking and liquidity farming. Confidence could have been rebuilt here indeed as Binance managed some of the rumors quite well when a lot has been withdrawn from their exchange. I think a lot of those who engaged in those EARN activities considered the opportunity cost too high in case something goes wrong. Now that it seems to have stabilized, they obviously reconsider depositing again.

They just believe in Binance again after they witness that exchange successfully proceeded billion of dollar in user withdrawals in late of 2022 and early of 2023 under many fuds. Binance by their smooth withdrawal process and good solvent liquidity for their users, just reclaimed their trust after fud attacks.

Those programs can not help Binance if they fail to proceed withdrawals for their users in latest months when cryptocurrency investors were very panic after collapse of FTX exchange (insolvency) and some bank collapses.

They need to always keep this Reminder: do not keep your money in online accounts in their minds.

I was quickly trying to find out whether all those newly made deposits were from whales or rather large transactions or whether they came from the retail sector. In the retail sector there are quite a lot of holders that still feel safer to have their Bitcoin deposited at an exchange than to have it in their own wallet. Even though it is unlikely that Binance is going bankrupt anytime soon, I would still always prefer my own setup. Especially today when it takes you a couple of searches on Google and you know how to set it up and secure your keys. It is no big deal anymore to set something up that is secure enough for smaller amounts of crypto.

[stompix]

Reading the article, one thing everyone ignored :

"We have seen legacy wallets that have not been used for 10 years suddenly awaken and transfer bitcoin. This could be a sign that long-term holdings are thinking prices might be capped around $30,000," Thielen added.

I think a lot overestimate how much can some really hold coins, at one point when you're sitting with 10-20 million in your wallet you're probably wondering should I sell it now and enjoy life without headaches or should I still hold it for another 5-6 years to get 100 million but hope I would still not need blue pills to have fun.
Not every investor is 18 yo and can wait another decade, for some $30k-40k means enough to have a comfy life, why bother anymore?
As for the EARN program on Binance being another trigger, people never learn, do they?

If you look at Bitcoin exchange balance for Binance (scroll down, select exchange) you will see there was also also a massive spike back in November last year at around $16K, very much near the lows.

Those spikes were caused by Binance moving coins around for their "proof of reserves" and then for their so-called audit, it wasn't caused by people depositing or withdrawing money but simply by Binance's new addresses not being counted, like those mysterious 120k bitcoins that are of course #safu