4,000 BTC ($347M) Just Moved to Binance

Large Bitcoin transfers to Binance linked to Matrixport fuel dump fears as BTC struggles below $90K and ETF outflows pressure sentiment.

A massive Bitcoin transfer has caught traders’ attention across the market. Data shows thousands of Bitcoins moved from private wallets and into Binance. 

The timing matters because Bitcoin trades below recent highs and is struggling to regain strength. Thus, this event adds more tension and Bitcoin dump fears to an already uncertain setup.

Massive Bitcoin Transfer Hits Binance

According to on-chain Bitcoin analysis, a total of 3,000 Bitcoin worth about $260 million landed on Binance this week. Whale Alert flagged the Bitcoin exchange inflow early and noted that the coins arrived at Binance’s known deposit address labelled 15KX2.

Further checks revealed more activity as two wallets sent close to 4,000 Bitcoin to Binance on the same day and the combined value reached about $347.6 million.

Arkham data linked the Matrixport Binance transfer to the firm’s infrastructure and added that these wallets do not belong to casual holders. 

Instead, their history shows regular movement tied to the trading firm co-founded by Jihan Wu, Bitcoin mining pioneer.

Notably, two weeks before this event, the same wallet received multiple inflows, and the amounts ranged from under 500 Bitcoin to over 1,000 Bitcoin per transfer.

Bitcoin Price Sits at a Tense Level

Bitcoin currently trades near $86,600 at the time of the transfer, and the price has failed to hold above $90,000 for nearly two months.

Since October, each rally has stalled sooner, forming more and more lower highs.

Meanwhile, on-chain analysts are eyeing Bitcoin’s True Market Mean at $81,500 and price often reacts strongly near this zone. 

With this being said, prices need to hold above to maintain stability, while a drop below would indicate that investors have now become bearish.

ETF Market Complicates Outlook

The ETF market has not shown much strength lately. According to data from Farside Investors, the Bitcoin ETF market suffered a $357 million outflow on Monday, with Fidelity’s FBTC leading the charge and losing $230 million.

No ETF issuer experienced inflows on the 15th.

The 16th registered milder losses of $277 million, with Fidelity’s FBTC being the only source of inflows ($26.7 million).

So far, weekly flows for the Bitcoin ETF market have been negative, with $634 million lost so far.

Related Reading: The Average ETF Investor Is Now At A Loss As Bitcoin Price Slides Further

Analysts Weigh the Signals

Trader Daan Crypto Trades noted in a recent update that the price of Bitcoin may continue to be choppy unless support near $84,000 to $85,000 breaks. Analysts are also eyeing strong resistance near $94,000.

Another analyst, 0xNobler, also noted that Matrixport wallets sold most holdings over recent days. He pointed to the steady selling on Binance as evidence of institutional Bitcoin selling.

In all, none of the above points towards a full sell-off, as blockchain data shows only the movement of funds, rather than intent.

Traders watching the performance of Bitcoin will need to rely on a strategy from here. 

Investors will also need to watch metrics like ETF and net exchange flows, as large inflows paired with rising sell volume can be a sign of shifting crypto market sentiment.