- Long-term Bitcoin holders are holding firm while inflows from short-term traders increase.
- Binance inflows spike during market volatility, but prices remain steady.
- Whale wallets show no major selling, signaling confidence in Bitcoin’s long-term growth.
Bitcoin’s trade trends on Binance highlight a fascinating dynamic within the cryptocurrency market. Long-term holders, defined as those holding Bitcoin for over 155 days, are showing little interest in offloading their assets. According to CryptoQuant’s data, only 18% of Bitcoin deposits into Binance originate from these seasoned investors. This signals a minimal selling pressure from the prospective cohort, which aligns with Bitcoin’s lately price resilience.
A closer look at the chart reveals a nuanced picture. The orange bars—representing inflows from long-term holders—remain consistently subdued, even as Bitcoin’s price exhibits a clear upward trajectory. This divergence is particularly notable as Bitcoin steadily climbs from $20,000 levels in early 2023 to over $1.6K by January 2025.
The muted contribution from long-term holders suggests that the recent price activity is likely driven by short-term traders, or “shrimp,” with holdings less than 1 BTC, and “crabs,” with holdings between 1-10 BTC.
Exchange Inflow Dynamics: A Tale of Spikes and Stability
Throughout 2023 and 2024, Bitcoin’s inflow dynamics on Binance reflected sharp but infrequent spikes. The most prominent surges occurred in March 2024 and June 2024, where Binance funding soared to 98.5K BTC and 104.9K BTC, respectively. These inflow events coincided with noticeable price pullbacks, hinting at profit-taking activities from short-term holders rather than panic selling by whales or lasting investors.
The second chart provides a deeper breakdown. Binance’s cumulative transfers peaked at 1.661 million BTC in March 2024, marking a significant liquidity movement. Despite these large-scale inflows, the market maintained its composure, with Bitcoin’s price continuing its steady climb—a testament to the strength of demand. Smaller influx spikes of 85K BTC to 132K BTC are also observed throughout the 2024 period, primarily during price consolidations.
Whales and Long-Term Investors: The Silent Guardians of Bitcoin’s Rally
The behavior of whale wallets (holding 1,000–10,000 BTC) adds another layer to the analysis. Despite the market turbulence, their inflows remain relatively insignificant compared to retail-sized transactions. This indicates a strong belief in Bitcoin’s long-term value, with whales opting to hold rather than contribute to Binance’s liquidity pool. As prices edge higher, this lack of whale-driven selling further supports a bullish sentiment.
Additionally, the low contribution from holders aged over 155 days reinforces the narrative that Bitcoin’s current rally is underpinned by market optimism rather than widespread liquidation. If anything, long-term holders appear to be sitting tight, possibly waiting for higher price targets before considering any distribution.
What Lies Ahead for Bitcoin?
The data suggests that the token’s price surge, accompanied by minimal persistent selling and steady whale retention, paints a picture of cautious optimism. With only 18% of deposits stemming from long-term holders, the market seems supported by confident traders rather than distressed sellers.
Should this trend persist, Bitcoin is likely to experience sustained price stability, with potential for further upside if retail and institutional demand continues to outpace supply. However, the spikes in inflows during periods of price volatility indicate that the market remains susceptible to short-term corrections.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
