Bitcoin, the leading cryptocurrency, regained the $60,000 level today after recently falling below $58,000.
This situation has also been reflected in the overall cryptocurrency market, and it is stated that the biggest factor triggering today’s rise was the statements made by FED Chairman Kevin Warsh at the European Central Bank Forum in Sintra.
While Bitcoin and altcoins are experiencing a recovery, the volume of Bitcoin flowing into Binance from retail investors has fallen to its lowest level since the exchange’s inception.
According to a CryptoQuant analyst, Binance retail Bitcoin inflows hit a record low of approximately 329 BTC per day.
CryptoQuant analyst Darkfost stated that retail BTC inflows to Binance from wallets holding less than 1 BTC have fallen to their lowest level since the exchange’s inception, averaging around 329 BTC per day.
This figure is well below the approximately 2,690 BTC ($161.7 million) daily level reached during the 2021 bull market peak. A single-day peak of 4,900 BTC was recorded in May 2021. Higher figures were seen in 2018: a monthly average of 3,700 BTC and a daily record of 10,400 BTC on January 4th.
The analyst stated that there could be several reasons for this situation:
- “Some retail investors, who played a significant role in the rallies in previous cycles, chose to take positions elsewhere or in assets other than Bitcoin in this cycle.”
- The emergence of spot Bitcoin ETFs as a new position-taking vehicle has attracted many investors and diverted them away from the crypto market.
- Some retail investors may now have a much longer-term perspective rather than a short-term one, or they may be expecting better BTC performance.
XRP Assets Experience a Huge Drop!
Binance is experiencing a significant decrease in retail Bitcoin inflows, and a similar situation is occurring on the XRP front.
Accordingly, Binance and Upbit’s XRP holdings decreased by 228 million, falling to their lowest level in months.
According to CryptoQuant analyst Amar Taha, XRP holdings on Binance and Upbit have fallen to their lowest levels in the past few months.
According to the analyst, Binance’s XRP holdings decreased by 6%, falling from approximately 2.78 billion XRP on May 12th to 2.61 billion XRP, reaching their lowest level since March.
Upbit, South Korea’s largest exchange, also experienced a decline. Upbit’s XRP holdings decreased by approximately 58 million XRP, falling from around 6.515 billion XRP on May 30th to 6.457 billion XRP on July 2nd.
As a result, the total outflow from the two exchanges reached 228 million XRP.
The analyst noted that while the drop in Upbit wasn’t significant numerically, it represented a substantial change for overall exchange liquidity due to it being the most traded asset on the exchange.
The analyst noted that the decrease in the amount of XRP on exchanges could indicate transfers to private wallets, cross-exchange movements, or a decrease in the supply available for immediate trading.
However, he noted that this alone does not confirm an accumulation or a bull market, and that a real price increase depends on sustained buying pressure and the extent to which spot market liquidity tightens.
*This is not investment advice.
