Whales pull BTC from Binance as leverage and Schiff’s warning split sentiment

Bitcoin critic Peter Schiff frames BTC’s return to $90k as a chance to de‑risk, while rising leverage and whale withdrawals leave direction unclear.

Bitcoin critic Peter Schiff stated the recent Bitcoin rally provides investors with a selling opportunity as the cryptocurrency traded near $90,000, according to his public comments.

Schiff, a long-time Bitcoin skeptic, said the current price level offers investors another chance to reduce exposure. He has consistently criticized Bitcoin and reiterated his stance during the latest price increase, stating that sharp rallies can provide holders time to reduce risk. His comments focused on risk management rather than short-term price gains and did not include a recommendation to buy at current levels.

The statement came as Bitcoin returned to higher levels after weeks of weaker price action. Market activity dropped significantly for much of December, with fewer traders active even as Bitcoin held steady, suggesting the rally lacked strong participation, according to market observers.

Leverage expanded in December despite weak sentiment, according to recent market data. Traders added significant leverage across Bitcoin and Ethereum markets, with combined futures open interest rising modestly. This growth occurred while the Fear Index remained low. Bitcoin open interest increased and Ethereum futures climbed as Bitcoin traded near recent highs. Substantial new leverage entered the market in the final week of the period, with weekly data showing Bitcoin positions growing modestly.

Major exchanges including Binance, Bybit, and OKX reported steady or higher open interest, with Gate.io recording the strongest growth during the period, according to exchange data. Funding rates remained positive, indicating traders paid to hold long positions, suggesting confidence in a price recovery.

Schiff continues to dear monger about Bitcoin

On-chain data showed two newly created wallets withdrew a substantial amount of Bitcoin from Binance within a three-hour period. The withdrawals raised questions about institutional or large holder intent. Some market participants viewed the withdrawals as potentially bullish since moving Bitcoin off exchanges can reduce available supply. Others cautioned that two wallets do not define a trend and pointed to total exchange outflows and long-term holding data as more reliable signals.

Market analysts noted that rising leverage combined with positive funding could increase downside risk. If prices fail to move higher, long positions may unwind quickly and whale-held Bitcoin could re-enter the market, according to market commentary.

Bitcoin continued to trade within a narrow range, showing a balance between buyers and sellers. The market remained divided between Schiff’s warning, rising leverage, and selective large holder activity as December trading concluded, with direction remaining unclear.