We have recently observed the largest stablecoin outflow from Binance to date. As Bitcoin's trading price hovered around $100K, the total stablecoin outflow reached $900M, with additional outflows continuing on December 18th and 19th.
Stablecoins leaving exchanges often indicate that investors are securing profits and have no immediate plans to re-enter the market, which can be interpreted as a bearish signal in the short-term.
Looking back to early November, however, we saw significant stablecoin inflows into Binance when Bitcoin was trading around $70K. Over three exceptional days, the total inflows exceeded $7B, fueling Bitcoin's rally.
In conclusion, while we are witnessing some measured profit-taking as Bitcoin reaches $108K, the magnitude of these outflows pales in comparison to the substantial inflows observed in November.
For now, this suggests there is no major cause for concern regarding the ongoing bullish trend but it explains the bearish sentiment we witnessed this week.
Written by Darkfost
