Binance Bitcoin Reserves Hit Yearly Low

If History Repeats, Bitcoin Could Surpass $187,500 in the Near Future, According to CryptoQuant.

Binance Bitcoin Reserves Hit Bottom

Binance Bitcoin reserves have dropped below 570,000 BTC, a level not seen since January 2024, according to analysis from CryptoQuant. This suggests that investors are increasingly storing their assets in cold wallets, reflecting confidence in Bitcoin’s long-term prospects.

Binance saw a similar drop in reserves earlier this year, before Bitcoin surged to an all-time high of $73,679 on March 13. CryptoQuant analyst Darkfost said:

“Large BTC withdrawals are often a sign that the market is building positive momentum.”
If history repeats itself, Bitcoin could surge in the coming months, surpassing its current $98,680 and reaching $187,500.

Bitcoin Dominance Nears 60%

Bitcoin Dominance (Bitcoin’s share of the total crypto market capitalization) is currently at 58.4%, slightly below the crucial 60% threshold. Some analysts believe that when BTC.D reaches 60%, capital flows could begin to shift to altcoins. Bitcoin Dominance reached 60% on October 30.

Bitcoin crossed the psychological $100,000 mark for the first time on December 5, but failed to maintain its upward momentum. The price has been falling below $100,000 since December 19, after hitting a new ATH of $108,353 on December 17.

Bitcoin’s monthly price action, screenshot from CoinGecko at 10:20 AM on December 26, 2024
According to Ryan Lee, chief analyst at Bitget Research, the downtrend is a common phenomenon during the holiday season when market liquidity is low. He predicts that after Christmas, liquidity will return, pushing Bitcoin above $105,000. The expected trading range for this week is $94,000 - $105,000. Lee also said:

“The market is usually more active after the holidays, as funds reposition capital into sectors that benefit from Trump’s inauguration.”

When looking at both reserve data, market dominance, and price trends, the analysis shows that Bitcoin is building positive momentum. If history repeats itself, Bitcoin prices could “take off” in the near future. However, investors need to keep an eye on other factors such as capital flows to altcoins and the impact of major economic events.