Coinbase’s trading dominance has decreased, and Binance has taken the lead in terms of traffic. This may have been the hidden driving force behind yesterday’s rise in the Bitcoin price. While Bitcoin used to show significant momentum in this market cycle, recent data suggests that there are now liquidity points outside of Coinbase that are leading the current trend.
The role of the largest stock exchanges is extremely important during the rise of the Bitcoin price. CryptoQuant analyst Mignolet has analyzed the Bitcoin market in detail. He highlighted the role of major exchanges such as Coinbase and Binance in the ongoing bull cycle. The dynamics of liquidity are changing, and roles are changing in the market.
In a recent post on CryptoQuant’s QuickTake platform, Mignolet explored how the dominance of trading traffic affects the movement of the Bitcoin price. The analyst highlighted that although Coinbase played a decisive role in the early stages of this year’s uptrend, its dominance has since declined.
This shift indicates a wider distribution of liquidity in the market. And with that, Binance has once again become a major player in maintaining bull market momentum. However, right before the September-October surge, Coinbase’s dominance actually declined. Now, the trading volume has not yet increased significantly (red-framed area is the graph).
Mignolet’s analysis points to a critical observation. Coinbase’s dominance in spot trading has declined significantly in the second phase of Bitcoin’s current trend. His analysis revealed that Bitcoin exchange-traded funds (Bitcoin ETFs) were approved earlier this year, resulting in a spike in trading activity on Coinbase.
This influx of liquidity has been instrumental in driving Bitcoin’s price up and disrupting expectations of a traditional halving cycle. However, as the rise progressed, Coinbase’s influence waned. The analyst emphasized that although Coinbase remains a pivotal source of market liquidity, Binance has taken on a more prominent role in the current market phase.
Notably, the growing dominance of Binance suggests that liquidity is flowing from a wider range of participants, contributing to a more decentralized and robust market structure. This redistribution is broader institutional and may indicate public interest in Bitcoin as traders and investors diversify their platforms.
After a few days of correction when the price dipped below $95,000, Bitcoin has now suddenly rebounded. BTC has now regained the $100,000 level, representing a 4% price increase. With this increase in Bitcoin’s price, it is now just less than 4% away from its all-time high of $104,000 set earlier this month.
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<p>The post Bitcoin Price Surge Driven by Binance Traffic, Not Coinbase Dominance first appeared on CoinBuzzFeed.</p>
