• Bitcoin held on Binance surged to a record high of 692K BTC according to blockchain analytics firm Glassnode.
• Investor confidence in centralized exchanges has been restored following the collapse of FTX late last year and resulting exodus from Binance.
• According to Markus Thielen, head of research and strategy at Matrixport, this rise in bitcoin held on Binance may mean that those coins are ready to be sold.
Record High Bitcoin Balance Held on Binance
The total amount of bitcoin (BTC) held in Binance’s wallets has increased sharply in the past four weeks, reversing the outflow that followed the collapse of crypto exchange FTX in November. Data tracked by blockchain analytics firm Glassnode shows the balance held in Binance’s wallets has increased by more than 52,000 BTC ($1.5 billion) in four weeks, taking the tally to 692,880 BTC.
Renewed Investor Confidence
The uptick in the balance held on Binance might signify renewed investor confidence in centralized exchanges‘ ability to keep their funds safe after the collapse of FTX. The global tally (coins held on all centralized exchanges) has increased by more than 27,000 BTC.
Potential Market Impact
According to Markus Thielen, head of research and strategy at Matrixport, the sharp rise in bitcoin held on Binance might be bad news for the market as large amounts of bitcoin being moved onto exchanges generally means that those are ready to be sold.
„The Hash“ Panel Discussion
„The Hash“ panel discusses what’s next for bitcoin, as cryptocurrency may reclaim much of its attention lost during recent years due to other crypto tokens and projects according to German investment bank Berenberg.
Investor confidence was dented late last year after FTX went bust prompting investors take direct custody over their coins but it appears confidence is now returning as evidenced by a surge of bitcoins entering back into exchanges like Binance prompting warnings from analysts like Markus Thielen who suggest these moves could signal a potential selloff soon.