Recent report, shared by CryptoQuant, highlights a convergence of exchange inflows and stablecoin liquidity shifts that could influence Bitcoin’s near-term priceRecent report, shared by CryptoQuant, highlights a convergence of exchange inflows and stablecoin liquidity shifts that could influence Bitcoin’s near-term price

Binance Whale Inflows and USDT Burns Raise Caution for Bitcoin

2026/02/12 11:58
3 min read

Recent report, shared by CryptoQuant, highlights a convergence of exchange inflows and stablecoin liquidity shifts that could influence Bitcoin’s near-term price structure.

The data points to increased whale deposits on Binance and significant USDT burn activity, both historically associated with defensive positioning.

While price action remains volatile, the underlying flows suggest a more cautious environment developing beneath the surface.

Whale Inflows to Binance Accelerate Sharply

The Binance inflow chart tracks the 7-day average daily BTC deposits segmented by trader size. On February 8, whale inflows exceeded 1,970 BTC, marking a substantial increase compared to prior inflow spikes in October, November, and December, when volumes barely crossed 400 BTC.

Those earlier spikes coincided with a local market top near $124,000 in mid-October, followed by a sustained correction. Elevated exchange inflows from large holders often indicate coins being positioned for potential selling rather than long-term storage.

The magnitude of the recent inflow suggests that large entities may be preparing to reduce exposure rather than accumulate at current levels.

Large USDT Burns Signal Liquidity Exit

A separate chart tracking total USDT mint and burn activity across TRC20 and ERC20 networks reveals a notable liquidity contraction. On February 9, approximately $3.5 billion in USDT was burned on Ethereum.

A comparable event occurred on January 20, when roughly $3 billion was burned. That liquidity reduction preceded Bitcoin’s decline from above $90,000 to below $67,000 by early February.

Burn events remove stablecoin liquidity from circulation, reducing the immediate buying power available to absorb sell pressure. When paired with elevated exchange inflows, the liquidity dynamic shifts toward downside risk rather than accumulation.

Bitcoin New Investor Flows Turn Negative as Capital Pulls Back

Whale Netflows Confirm Distribution Behavior

The Whale Screener model, which monitors netflows across more than 100 large wallets, detected sharp BTC inflows to spot exchanges on February 4, 5, and 7. Each of those days recorded deposits between $650 million and $850 million.

Sustained deposits of this magnitude typically reflect distribution patterns rather than strategic long-term positioning. Repeated exchange transfers by whales often precede volatility expansion, particularly when liquidity conditions are tightening.

Structural Interpretation

The alignment of elevated whale inflows, significant USDT burn activity, and repeated net deposits to centralized exchanges presents a coordinated signal. Historically, this combination has aligned with profit-taking phases and reduced risk appetite.

While these indicators do not confirm immediate downside, they suggest that short-term rallies may face supply pressure unless new liquidity enters the system.

For now, the data supports a cautious interpretation of Bitcoin’s structure, with capital flows leaning toward exposure reduction rather than aggressive accumulation.

The post Binance Whale Inflows and USDT Burns Raise Caution for Bitcoin appeared first on ETHNews.

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