Binance BTC Reserve Drops Amid Demand Discussions

Binance BTC reserve has dropped from over 630K BTC to 579K in four months.
Can BTC climb above $105K amid looming demand shock?

The Binance exchange’s Bitcoin (BTC) reserve has fallen to January 2024 lows, a trend viewed positively by CryptoQuant analysts for the asset’s long-term outlook. Since August, the reserve has declined from 630K BTC to nearly 580K BTC, marking levels not seen since January, just before US BTC ETFs were launched and triggered a 90% pump, according to pseudonymous analyst Dark Fost.

Bitcoin: More Rally or Price Range?

The declining reserve indicates a movement of BTC from Binance for self-custody, hinting at a potential price rally. Fost noted that the outflows support BTC’s favorable long-term prospect. Notably, the decline in the Binance BTC reserve from August to December coincided with a surge in cryptocurrency prices, peaking at $108K.

With Christmas passed and attention moving towards the upcoming Trump inauguration, analysts speculate on BTC’s future. Bitget Research chief analyst Ryan Lee predicts BTC to stay range-bound between $94K and $105K, potentially breaking out after the holidays. Lee stated,
> “The expected trading range for BTC this week is $94,000 – $105,000. The price is anticipated to surpass $105,000 after Christmas.”

Since Christmas Eve, BTC has hovered around $100K, raising expectations for a surge to $110K. However, Santiment warns that a breakout to $110K may occur when it is least expected. The analytics firm remarked,
> “Traders are now swinging bullish once again, with speculation of $110K escalating. Historically, we see $110K Bitcoin only after the crowd doesn’t expect it.”

At the time of writing, BTC was valued at $97.8K, about 10% shy of its all-time high of $108.3K.