In December, there was a sharp drop in Bitcoin deposits from large holders, known as whales, to the Binance exchange. CryptoQuant views this as a positive near-term signal, suggesting a decrease in immediate selling pressure on the market’s largest trading platform.
According to CryptoQuant analyst Darkfost, monthly whale inflows to Binance fell from about $7.88 billion to $3.86 billion in December, effectively halving in just a few weeks. This represents a significant slowdown in deposits from major holders.
While inflows to an exchange are not direct sales, they are necessary for large-scale selling. Since Binance handles the largest share of exchange-related flows, a decline in whale deposits there generally indicates reduced selling pressure from these influential players.
However, Darkfost noted that this overall trend doesn’t eliminate the risk of sudden, market-moving transfers. He pointed to recent examples, including a $466 million spike in deposits from large holders and over $435 million specifically from the 1,000 to 10,000 BTC range. These isolated large movements can still impact the market and reintroduce volatility.
A separate CryptoQuant update suggested the most intense selling pressure from whales may have eased, noting that realized losses from newer large holders—which contributed to the price drop from $124,000 to $84,000—have declined and stabilized.
In summary, a major source of near-term selling pressure has diminished, but the market remains vulnerable to volatility if whales decide to make large moves again.
At the time of reporting, Bitcoin was trading at $87,792.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Bitcoin Whales Grow Quiet on Binance as Inflows Plunge Is a Supply Shock Brewing designed to be clear and helpful for all levels of understanding
Beginner Definition Questions
1 What is a Bitcoin Whale
A Bitcoin whale is an individual or entity that holds a very large amount of Bitcoin Their trades are big enough to potentially move the market price
2 What does inflows plunge on Binance mean
It means that the amount of new Bitcoin being sent into the Binance cryptocurrency exchange has dropped dramatically This suggests large holders are not depositing their coins to sell them
3 What is a supply shock in this context
A supply shock happens when the available Bitcoin for sale on exchanges suddenly becomes much scarcer If demand stays the same or increases while the supply for sale dries up the price is likely to surge upward
4 Why is Binance specifically mentioned
Binance is the worlds largest cryptocurrency exchange by trading volume Its a major hub for liquidity Activity there is seen as a key indicator of market sentiment
Intermediate Market Impact Questions
5 Why would whales stop depositing Bitcoin to exchanges
They typically do this when they plan to hold for the long term They might believe the price will go much higher so they move coins to private secure wallets to wait reducing immediate selling pressure
6 How does less Bitcoin on exchanges lead to a price increase
Think of it like a popular concert with limited tickets If fewer tickets are available for sale but many people still want to buy the price of the remaining tickets goes up The same principle applies to Bitcoin on exchanges
7 Is a supply shock guaranteed to happen
No its a possibility not a guarantee The article title poses it as a question A sharp drop in demand could still push prices down Its about the balance between available supply and current buyer demand
8 Whats the difference between withdrawals and plunging inflows