Binance recorded the strongest Bitcoin withdrawal spike since 2018, creating a rare supply trend during price consolidation around the 90,000–91,000 dollar range.
Deposits to Binance dropped to the lowest level since 2017, reducing sell-side pressure and shifting available supply away from active trading venues.
The divergence between soaring withdrawals and falling deposits marked an unusual phase where market participants moved Bitcoin toward self-custody rather than selling.
Bitcoin accumulation on Binance has entered an unusual phase as traders continue removing coins from the exchange while price holds near the 90,000–91,000 dollar range. The pattern reflects a broad shift toward self-custody during a period when selling activity remains muted.
Withdrawal Spike Signals Strong Custody Preference
Recent on-chain data shows a sharp rise in outgoing transactions from Binance. The 30-day EMA for withdrawals reached about 3,100 daily transactions on December 3. This level has not appeared since May 2018. Each uptick suggests that more participants prefer storing their Bitcoin away from centralized venues.
This trend has developed as Bitcoin consolidates near record territory. Normally, rallies near peak levels attract traders who look to lock in gains. Instead, market participants continue pulling coins away from order books. The consistently elevated withdrawal count supports the view that holders aim for longer storage periods.
CryptoOnchain described the divergence as historic, noting that the behavior reflects a broader shift rather than short-lived enthusiasm. The message circulated widely among market observers who monitor exchange flows as part of broader supply metrics.
Deposit Activity Drops to Multi-Year Lows
While withdrawals accelerate, depositing activity tells a very different story. The 30-day moving average of deposits has fallen toward the 320-transaction range. This is the lowest level for Binance since 2017. The sustained decline shows that fewer users are sending coins to the platform for trading.
This development introduces a rare pattern during price strength. When Bitcoin trades near its peak range, higher deposit activity is usually expected. Traders often send assets to exchanges to take advantage of liquidity when rallies approach new records.
Instead, the current environment shows a market that remains reluctant to engage in selling. The lower deposit count reduces immediate sell pressure and keeps the circulating supply on exchanges constrained.
Supply Dynamics Shift as Market Withholds Selling Pressure
The combined drop in deposits and rise in withdrawals creates a notable supply situation. With fewer coins available on Binance, spot liquidity tightens across the board. This condition often precedes reduced order book depth as circulating supply becomes scarce.
As traders continue moving assets to cold storage, the exchange balance trends lower. This adjustment suggests that market participants are not preparing for distribution phases, even with Bitcoin hovering near historical levels. The steady outflow shows that users prefer retention rather than short-term rotations.
The divergence between the two metrics—seven-year withdrawal highs and eight-year deposit lows—defines the current market landscape. It presents a trading environment shaped by reduced sell-side activity and a cautious approach toward releasing supply back into active circulation.
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