Bitcoin Price Surge in Question as Miners Flood Binance With $2 Billion Worth of Cryptocurrency

Bitcoin’s $120K Rally in Jeopardy as Miners Flood Binance With $2 Billion Worth of Cryptocurrency

The recent surge in Bitcoin’s value, which has seen it approach the elusive $120,000 mark, is facing significant headwinds due to an unprecedented influx of funds from miners onto Binance. According to reports, over 18,000 BTC, worth a staggering $2 billion, was deposited into the exchange on July 25.

This sudden and substantial shift in miner behavior has raised concerns about the short-term sustainability of the rally. Historically, such large inflows have been associated with periods of consolidation or even corrections. The data suggests that this significant outflow could be indicative of profit-taking among miners, potentially signaling a temporary slowdown in the market’s upward momentum.

The $2 billion deposit has also sparked concerns about liquidity pressure on Binance. This substantial influx of funds has led to a withdrawal event worth $650 million in USDC, which may exacerbate short-term selling pressure. The exchange has responded by launching its Discount Buy feature, allowing users to purchase cryptocurrencies at below-market rates during dips.

Despite the recent sell-off, Bitcoin’s long-term fundamentals remain robust. Miner reserves have been increasing since March, with addresses holding 100-1,000 BTC accumulating a staggering 65,000 BTC – their highest level since November 2024.

Source: cryptopotato.com