Binance Bullish Signal: BTC/ETH Outflows Counter Surge in Stablecoin Inflows

Interesting data from on-chain analysis recently surfaced, revealing an accumulation pattern for Bitcoin and Ethereum on the Binance exchange that preceded a new bullish momentum in history.

Binance expects $1.77 billion in BTC/ETH outflows due to $1.58 billion in stablecoin inflows

In a QuickTake post from November 14th, pseudonymous market analyst CryptoOnchain shares his insights on the direction of the crypto market based on Binance’s activity. This post revolves around the Binance 7-Day Asset Netflow By Network indicator. This shows whether more assets on a particular network have been deposited into Binance (net inflows) or withdrawn from it (net outflows) over the past seven days, revealing underlying activity across different asset types.

According to CryptoOnchain, the Binance network recorded a net outflow of $1.77 billion in Bitcoin and Ethereum assets. Specifically, analysts report that Bitcoin (BTC_Native) has seen $1.1 billion in outflows and Ethereum (ETH_Native) has seen $670 million in outflows over the past week.

Typically, a large movement of assets from exchanges of this size reflects a growing “HODL” sentiment among investors, as these coins are typically moved and held in private wallets. By extension, the increased willingness of holders to buy up signals a reduction in pressure on the seller side, as there is less liquidity while waiting to bet on the price.

At the same time, Binance also recorded a similar amount of stablecoin inflows of $1.58 billion. Of this, about $900 million came in as USDT and $680 million came in as USDC. A large influx of stablecoins typically indicates an active increase in purchasing power by “smart money.” When short-term holders and retailers sell and selling pressure increases, in this scenario long-term holders are ready to absorb the selling pressure with liquidity.

Obvious accumulation amid market uncertainty

Historically, this divergence in on-chain activity (large BTC/ETH outflows and large stablecoin inflows) occurred before prices recovered upwards. Therefore, this is one of the strongest indicators that the market is in an accumulation phase.

Despite the prevailing market sentiment being one of fear, CryptoOnchain hypothesizes that major market participants are currently “buying on the edge” and thus could see a strong price bottom in the near future. Broadly speaking, the market appears to still maintain a bullish outlook.

As of this writing, Bitcoin is worth approximately $96,133, losing over 1.33% of its value from the previous day. Meanwhile, Ethereum was valued at $3,153, reflecting a 1.53% loss in 24 hours, per CoinMarketCap data.