Trading activity and capital flows on Binance are becoming a key signal that could shape Bitcoin's next moves, in the context of prices weakening around $86,000 and market sentiment leaning negative for several weeks.
The decision for Bitcoin [BTC] to recover or continue to decline depends on many factors, but data from exchanges that significantly influence the market, like Binance, often reflect the positions of investors earlier than the rest of the market. Indicators on spot trading, perpetual contracts, and Open Interest are being closely monitored.
MAIN CONTENT
Capital inflow to Binance reached $1.17 trillion, up 31% year-on-year.
Binance leads in spot and perpetual contract volumes, while holding the majority of Bitcoin Open Interest.
Binance leans towards long positions, but the overall market for perpetual contracts still slightly favors sellers.
Binance records capital inflows and trading volumes at record levels.
Capital inflow to Binance has surged, and both spot trading volume and perpetual contracts have reached high levels, indicating that investor participation is concentrated at the largest market exchange.
In recent weeks, the overall sentiment on Bitcoin has been leaning bearish, and the recent decline brought the price down to around $86,000. However, activity on Binance stands out as it clearly reflects the 'commitment' of investors through spot trading and perpetual contracts.
A report from CryptoQuant indicates that capital inflows to Binance reached $1.17 trillion, up 31% year-on-year, and represents the highest inflow recorded compared to other exchanges. This implies that Binance is the primary destination for capital flows in crypto.
In the spot market, trading volume has reached a record level of $7 trillion since the beginning of the year. The gap between Binance and the nearest competitor, Bybit, is described as very large, as Bybit records spot volumes nearly 5 times lower.
In the perpetual contract market, Binance continues to lead with a cumulative volume of $24.5 trillion. The report also mentions that this activity comes from over 300 million investors, reinforcing Binance's dominant position and allowing the group of traders here to significantly influence the next price volatility of Bitcoin.
In price movement and derivatives analysis, investors often combine insights about Open Interest, funding, and liquidity; you can refer to tools and related content on BingX to cross-check market behavior when trading volume increases significantly.
Bullish positions on Binance are increasing, especially in perpetual contracts.
Derivatives data shows that Binance is leaning towards recovery expectations as Open Interest is high and the active buying ratio is dominant, reflecting traders' preference for long positions.
Binance currently holds the largest market share in Bitcoin Open Interest, at $10.90 billion, while the total Open Interest across the market is $58.63 billion. This difference emphasizes the impact of Binance on price direction.
Notably, trading data shows that volume is primarily driven by bullish positioning, as investors prioritize long orders. A measure referenced is the Taker Buy/Sell Ratio (Long/Short Ratio), used to see which side, buyers or sellers, dominates active order volume.
At the time of recording, taker buys lead with a ratio of 2.2, significantly higher than the neutral level of 1. If Binance's Open Interest continues to rise alongside high trading volumes and remains tilted towards long, this could be a factor for a rebound in the market.
At the time of writing, the trading volume of Bitcoin on Binance is reported to be $16.58 billion, providing additional context that bullish signals are occurring in a rich liquidity environment.
The Bitcoin market remains hesitant despite positive signals from Binance.
While Binance shows a bullish inclination, the rest of the perpetual contract market still slightly favors sellers, indicating that recovery signals have not fully spread.
The overall picture does not fully reflect the optimistic signals coming from the group of investors on Binance. However, in the spot market, sentiment is somewhat constructive as net buying pressure has appeared in recent days.
Specifically, investors purchased about $83 million worth of Bitcoin in the past 24 hours. Cumulatively from the beginning of the week, net trading shows that approximately $315 million worth of Bitcoin has been accumulated, suggesting a behavior of gradually 'gathering' as prices adjust.
In contrast, in the overall perpetual contract market, the Taker Buy/Sell Ratio is at 0.98, reflecting a slight edge for sellers. Although a ratio below 1 usually favors sellers, the small gap also indicates a weak bearish conviction.
Other perpetual contract indicators, including Funding Rate and Open Interest-Weighted Funding Rate, are still described as leaning towards bullish bias. Collectively, the signals indicate that investor sentiment is gradually becoming optimistic and the broader market shows signs of catching up, where a prolonged accumulation phase could create momentum to push Bitcoin towards the $90,000 range.
Conclusion
A capital inflow of $1.17 trillion and record volume levels on Binance indicate that capital and positions are concentrating on the most influential exchange. In derivatives, a dominant taker buy ratio and high Open Interest reinforce recovery expectations, but the overall market remains slightly hesitant. If accumulation continues, the target of $90,000 becomes more feasible.
Frequently Asked Questions
Why is the activity on Binance considered an important signal for Bitcoin's price?
Binance has a large user base and leads in both spot and perpetual contract volumes in the article, so capital flows, volume, and positioning (long/short) here often reflect market behavior and the risk appetite of investors.
What does the Open Interest of Bitcoin on Binance indicate?
High Open Interest indicates a large amount of open derivative positions. The article mentions that Binance has Bitcoin Open Interest of $10.90 billion out of a total of $58.63 billion across the market, implying that Binance has a significant influence on price movements when positions change.
What does a Taker Buy/Sell Ratio of 2.2 mean?
This ratio measures the extent to which buyers or sellers dominate active order volume. A level of 2.2 is significantly higher than 1 (neutral), indicating that active buying pressure is overwhelming and the market on Binance is leaning towards expectations of an increase.
Why is the overall market for perpetual contracts still described as slightly bearish?
The article indicates that the Taker Buy/Sell Ratio across the market is at 0.98, meaning that sellers have a slight edge. However, the small difference shows weak bearish conviction, and the funding indicators still lean bullish.
What spot data supports the accumulation scenario?
In the last 24 hours, investors purchased about $83 million worth of Bitcoin. Since the beginning of the week, the total net accumulation is around $315 million, indicating that buying pressure is gradually absorbing supply as prices adjust.
Source: https://tintucbitcoin.com/binance-nghieng-tang-co-the-anh-huong-bitcoin/
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