Hidden Driver of Bitcoin's Rally: Binance Leads, Coinbase Falls

BTC has demonstrated strong momentum in this market cycle, but fresh findings imply liquidity sources outside Coinbase may be driving the trend.

Mignolet, a CryptoQuant analyst, described Bitcoin's market and noted Coinbase and Binance's importance in the bull cycle.

Changing Liquidity and Exchange Roles

Mignolet wrote “Coinbase Dominance Remains Low” on CryptoQuant QuickTake on Coinbase's impact on Bitcoin's price.

The expert said that Coinbase was key to this year's Bitcoin rise, but its influence has subsequently declined. This move suggests a wider market liquidity distribution, with Binance supporting bullish momentum.

Mignolet's data shows that Coinbase's spot trading dominance has dropped during Bitcoin's second rising phase.

His investigation showed that Coinbase's trading activity increased when Bitcoin ETFs were legalized earlier this year.

Liquidity helped Bitcoin prices rise and break the halving cycle. As the rally persisted, Coinbase lost power.

Coinbase is still a key liquidity source, but Binance has grown in importance, the analyst said. Writes Mignolet:

Let me repeat: Coinbase liquidity matters. It matters much. There's an even more important liquidity source. = Binance

Binance's dominance shows liquidity flows from more parties, creating a decentralized and powerful market structure.

As traders and investors diversify platforms, this shift may imply institutional and retail interest in Bitcoin.

Bitcoin Rebounds Sharply

After a few days of decline below $95,000, Bitcoin has rebounded.


At the time of writing, the asset had regained $100,000 with a trading price of $100,625, up 4%.

Bitcoin is 3.6% away from its all-time high of $103,000 reached earlier this month after this price gain.

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