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ZyCrypto 2024-12-27 14:46:56

Bitcoin Reserves On Binance Fall To Level That Sparked 90% BTC Rally In March — Will History Repeat?

Bitcoin supply on Binance, the world’s biggest digital asset exchange by trading volume, has plummeted to levels not seen since January 2024. Two months after BTC reserves on Binance slumped, Bitcoin saw a parabolic 90% rally just two months later in March. Long-Term Holding Gains Traction CryptoQuant contributor Darkfost noted in a Dec. 25 note that Binance’s BTC reserves recently dropped below 570,000 BTC — the lowest level since January of this year. Historically, falling exchange reserves indicate that holders are moving their Bitcoin holdings to cold storage as they are incredibly bullish about the asset’s price in the long term rather than keeping them on exchanges for selling in the short term. Binance’s BTC reserves fell to a similar level in January , whichpreceded a 90% bull run two months later, with the alpha cryptocurrency hitting a record high of $73,737 on March 13. “When periods of withdrawals occur, it is often a sign of positive momentum building in the market,” Darkfost wrote. Time For Another 90% BTC Price Surge? Bitcoin appeared set to recapture the $100,000 mark after rallying past $99,400 on December 24 just before Christmas Day. The upsurge, however, stalled at around $99,886 on Thursday, and BTC has since nosedived to sub-$96,000. At press time, Bitcoin is trading for $96,696 per coin, according to CoinGecko data. Less than a week ago, the benchmark cryptocurrency was valued at a whopping $108,000, hitting a historic price as the holiday season neared. Nonetheless, a hawkish Federal Reserve dented the asset’s rally by expressing a more cautious approach to rate cuts in 2025. However, Bitcoin is expected to retake the six-figure price tag amid Donald Trump’s imminent presidential inauguration on Jan. 20, which is considered a bullish event for crypto regulations in the US. Many are waiting to see whether Trump will establish a national Bitcoin reserve. Meanwhile, if history repeats itself as predicted by CryptoQuant’s Darkfost, BTC could soar to as high as the $185,000 price point in the coming months from its current levels.