Stablecoin outflows dominate Binance after $13 billion inflows in December.
Market trends mirror May 2024 before Bitcoin’s summer crash.
MVRV analysis shows Bitcoin is yet to hit its cycle peak.
Crypto traders are seeing reduced buying pressure as stablecoin outflows on Binance hit $310 million. This shows that investors are cautious. Meanwhile, Bitcoin’s MVRV ratio suggests that the price could still go up.
Binance saw a record-breaking $13 billion inflow on December 5, but now outflows are dominating as investors play it safe. Because of this, Binance’s ERC-20 stablecoin reserves have dropped since mid-December, which means buying pressure is cooling off.
At first, inflows were seen as a sign of market confidence, but now the outflows show that investors are locking in profits or being cautious. Analysts think this could mean bullish momentum is fading as investors change their strategies.
This is similar to what happened in May 2024, where stablecoin flows came before Bitcoin’s summer decline. After Bitcoin ETFs in 2024, BTC hit a new all-time high above $73,000 in March. But then Bitcoin fell in the summer, trading mostly in the $60,000 range. B…
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