The world’s largest cryptocurrency has been making headlines again following a surge in BTC held on the popular exchange, Binance. According to on-chain data analytics firm Glassnode, Binance recorded a new peak amount of Bitcoin holdings at 692,000 BTC.
Binance’s Latest Bitcoin Holdings Is A New Record
According to data from Glassnode, the total amount of Bitcoin held in Binance wallets has increased significantly in the past four weeks. This surge has reversed the outflow that followed the collapse of FTX in November.
The amount held in Binance wallets has grown by more than 52,000 BTC (equivalent to $1.5 billion) in four weeks, reaching 692,880 BTC. Additionally, the overall volume of crypto coins in centralized exchanges globally has risen by more than 27,000 BTC.
This increase in the amount held on Binance indicates that investors have regained confidence in centralized exchanges’ ability to safeguard their funds. Last year, the collapse of FTX, one of the world’s top three cryptocurrency exchanges, caused a decline in investor confidence.
Binance, another exchange, also faced pressure after FTX’s bankruptcy, leading investors to move towards self-custody of their crypto coins. In three weeks leading up to December 19, the Bitcoin held on Binance decreased by nearly 88,000 BTC to 580,357 BTC.
Meanwhile, Markus Thielen, the head of research and strategy at Matrixport, believes that the sudden increase in BTC held on Binance could negatively affect the market. Thielen explained that a significant influx of Bitcoin into exchanges typically indicates that investors are preparing for a sell-off.
He also noted that previously inactive wallets that had been dormant for up to a decade had begun transferring Bitcoin, which could be a sign that long-term holders anticipate prices will be around $30,000. According to CoinGecko data, Bitcoin was trading at $29,251 at the time of writing, indicating a slight increase of 0.5% over the past day.
The leading cryptocurrency has surged by 7.2% in the last 30 days and recently traded above $31,000 for the first time since June last year. However, Macro analyst Tom Dunleavy holds a different view, stating that the increase in exchange balance is due to the growing demand for alternatives to the dollar.
Dunleavy tweeted that he believes this is a sign of renewed interest in Bitcoin as an asset, particularly as banks in the US continue to encounter challenges and more people show interest in alternatives to the dollar.
BTC Will Regain Lost Attractiveness – Berenberg Report
According to recent research by Berenberg (one of the leading privately-owned banks in Europe), BTC may soon regain the attention it lost to other crypto tokens in recent years or even its faded attraction during last year’s crypto winter. The report notes that as US regulators scrutinize the industry, almost every token seems at risk of being labeled security and becoming the subject of enforcement actions.
However, Bitcoin is an exception based on the guidelines of the US Securities and Exchange Commission (SEC) and other regulators. They recognize it as a commodity rather than a security.
According to the bank, the recent surge in Bitcoin’s price indicates that more investors recognize it as a viable investment alternative than other cryptocurrencies or the more prominent global finance ecosystem. The note suggests that concerns over the US dollar’s dominance and the recent banking crisis have led some countries to reduce their vulnerability to the greenback, which could aid in emphasizing Bitcoin’s value proposition.
The report also suggests that the upcoming fourth Bitcoin halving in May 2024 could be a positive catalyst for the cryptocurrency. History shows that Bitcoin tends to rally before and after halving events.
Additionally, the report notes that the Lightning Network has highlighted the utility of the BTC for micropayment settlements.
HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.