By Alicia Maher
Recent information from CryptoQuant reveals that a lot of Bitcoin has been extracted from Binance. It is the largest single-day withdrawal from the exchange since its existence. Binance is the largest cryptocurrency in the world by its trading volumes and blockchain system.
Bitcoin Rally Continues
Bitcoin sustained its latest rally and pushed up to a six-week trading high level. It got back to its positive buying level and broke through the $20,000 barrier. The crypto market’s momentum has increased as the overall market capitalization shot beyond the $1 trillion line again.
Binance noticed a position overhaul of more than 55,000 Bitcoin from their exchange on the 26th of October. The world’s largest crypto exchange said the latest huge withdrawal beat every other purchasing spree. This includes the crash that took place in March 2020 and the June dip down to $17,600.
A CryptoQuant contributor, Binh Dang, equally noted that the outflows on Binance broke records set over many months. According to what he shared in his post on Quicktake, 71,579 Bitcoin is the most significant amount of outflow on the exchange.
The recent outflow added to bring the number of Bitcoin outflows from derivative exchanges to 94,024. It is the most impressive figure on record since July. As a result, it helped to reduce the number of Bitcoin on derivative exchanges since Bitcoin prices dropped in May.
Crypto Might Decouple from Stocks
Dang also pointed out that outflows from derivative exchanges usually follow a selling pressure decrease. This is seen from a wide-range point of view.
Bitcoin gained a substantial increase following a long time of consolidating losses. Another contributor to CryptoQuant, IT Tech, equally raised an awareness that the ongoing crypto price rally might not last. They said the bear market is still on as it usually takes months or even years.
They shared from their point of view that the current rally could be a fake pump. It is only coming ahead of the next Federal Open Market Committee policy meeting in November.
IT Tech also mentioned the inverse relationship that exists between Bitcoin and the Dollar index. The Dollar index aided the rally of Bitcoin and the S&P 500 index as it goes down, they said.
Note that other assets such as Ethereum and DOGE are also rallying during this period. Analysts expect that the crypto market will decouple from the stock market so it can stage a full recovery. It would, thus, be independent of the macroeconomic factors that caused it to plunge in the first place.