Binance’s Bitcoin Holdings Surge Over 50,000 BTC in 4 Weeks: Investor Confidence Restored

By 0xGorki On Apr 28, 2023

Binance, the world’s largest cryptocurrency exchange by trading volume, has increased its Bitcoin holdings by more than 50,000 BTC over the past four weeks. This news comes as a surprise to many, given the movement of investors who moved their money off the exchange late last year following the FTX crash.

According to data from Glassnode, Binance’s wallet balance has surged to over 692,880 BTC or more than 27,000 BTC in the past. This increase in Binance balances suggests that investor confidence in the CeFi crypto exchange has been restored, and investors believe that Binance will keep their funds safe.

The decrease in Binance’s BTC holdings late last year, following the collapse of the world’s third-largest crypto exchange, had put the exchange under a lot of pressure. This prompted investors to move their coins directly and caused a decline in investor sentiment.

However, Markus Thielen, Matrixport’s head of research and strategy, warns that the rapid rise of BTC to Binance could be bad news for the market. He suggests that a large amount of Bitcoin being moved to crypto exchanges indicates that investors are ready to sell off their holdings quickly, which may inevitably cap Bitcoin prices below $30,000.

Despite this, Bitcoin has rallied this year, strengthening its appeal as a traditional financial hedge. In March, Bitcoin saw growing interest as many banks in the United States failed. This growing interest in Bitcoin assets may be a result of the battle with US banks and interest in the dollar.

Currently trading at $29,177, Bitcoin is up more than 0.5% over the past 24 hours but has surged more than 77% this year and hit a high of over $31,000. As the cryptocurrency market continues to evolve, it will be interesting to see how the movement of BTC to exchanges like Binance affects the market and investor sentiment.

Read more:

Join us on Telegram