Binance, the world's largest cryptocurrency exchange by trading volume, has seen its Bitcoin reserves drop to their lowest level since January 2024, when Bitcoin's price surged 90% in two months. Analysts point out that if this trend repeats, Bitcoin's price could reach $187,500 within months, based on the current price of $98,680.
Binance Bitcoin reserves decline
According to a report by CryptoQuant analyst Darkfost on December 25, Binance's Bitcoin reserves have fallen below 570,000 BTC, the lowest level since January.
When the Bitcoin reserves of an exchange decrease, it usually means that investors are transferring Bitcoin to cold wallets, reflecting an optimistic view of Bitcoin's long-term price trend.
In January of this year, Binance's Bitcoin reserves also fell to similar levels, followed by a surge in Bitcoin price to the then all-time high of $73,679 on March 13. Darkfost noted:
"When the market experiences large-scale withdrawals, it often indicates that the market is accumulating positive momentum, which is a bullish market signal."
Bitcoin dominance hovers below the key level of 60%
According to data from TradingView, Bitcoin's dominance currently stands at 58.34%, slightly below the key threshold of 60%.
Some analysts believe that if Bitcoin's dominance reaches 60%, it may mean that market funds will start to rotate into other cryptocurrencies.
Benjamin Cowen, founder of Into The Cryptoverse, predicted as early as August 18 that Bitcoin would reach 60% dominance before December, ultimately achieving this target on October 30.
However, since breaking the psychological barrier of $100,000 for the first time on December 5, the price of Bitcoin has failed to stabilize above that level and fell back below $100,000 on December 19 after reaching an all-time high of $108,300 on December 17.
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