Bitcoin holdings on Binance, the crypto exchange boasting the highest trade volume globally, have plunged to a low not seen since January 2024. This precedes a historic 90% climb in Bitcoin’s value just two months later in March. Should the current trend follow the same trajectory with Bitcoin priced at $98,680, we could witness a staggering leap to $187,500 in only a matter of months.
The significant dip in Binance’s Bitcoin reserves to below 570,000 BTC, the lowest since January 2024, points towards investor confidence. According to an analyst note by CryptoQuant contributor Darkfost, declining exchange reserves often mean that investors are moving their Bitcoin into more secure, ‘cold’ storage, indicative of bullish sentiments about its future valuation.
Historical patterns support this trend as Binance’s reserves had similarly slipped in January 2024. Subsequently, on March 13, Bitcoin had experienced a surge reaching an all-time high of $73,679. Darkfost believes that these periods of Bitcoin withdrawals reflect positive market momentum.
At present, Bitcoin dominance is hovering just below the critical 60% mark at 58.4%. Some analysts suggest that breaching the 60% threshold might hint at a broader shift towards other crypto assets. Referring to this aspect, Into The Cryptoverse founder Benjamin Cowen had predicted in August that Bitcoin would touch the 60% mark by December, which indeed happened on October 30th.
Despite these developments, Bitcoin’s price has had some difficulty maintaining above the $100,000 level ever since it broke the barrier on December 5th. Bitcoin’s price has been below the key $100,000 mark since December 19th, even after peaking at a new high of $108,300 on December 17th. Chief analyst at Bitget Research, Ryan Lee, nevertheless believes that Bitcoin may surpass $105,000 as liquidity resumes post the Christmas holidays. He cited holiday illiquidity as the cause of the recent Bitcoin downtrend and predicted a trading range of $94,000 – $105,000 for BTC this week.