Binance Data Shows Reason Behind Huge Bitcoin (BTC) Activity
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A close look at Binance Bitcoin (BTC) transaction activity would show why there have been huge trading volumes recently. BTC saw huge swings over the past week, with a gap of around $2,000 between the weekly high and low. Despite the huge volatility, the top cryptocurrency saw the highest trading activity in more than three months. On Tuesday, BTC trading volume was the highest since the decline in June this year, when the crypto winter mood intensified.
What Binance Bitcoin Action Shows
Binance’s spot trading volume has grown tremendously, which has apparently led to an increase in BTC volumes. According to Crypto Quant analysis, spot trading on Binance was the cause. The trading model has been on a steady rise since the top exchange launched free spot trading. In July 2022, Binance launched zero-fee Bitcoin trading. The price correlation with respect to spot trading on Binance has also been disrupted recently.
“The relationship between Binance Perp and the Spot market is highly correlated with prices, but since January of this year it has weakened. The number of BUSD deposits has also increased”
Meanwhile, BUSD deposits have been on the rise, while BTC/BUSD trading volume is increasing. It is also possible that some traders bought Bitcoin with BUSD. Amidst all this, BTC continues on a path of high volatility. Over the past week, BTC showed a price difference of almost 11% between the weekly low and high. At the time of writing, BTC is at $19,327.79, up 1.77% in the last 24 hours, according to price tracking platform CoinMarketCap.
Currency reserves on the rise
As BTC continues to fluctuate, traders seem to be playing the waiting game in search of a “buy the dip” opportunity. When looking at Bitcoin reserves on exchanges, an upward trend has been observed in all exchanges as well as in derivatives. As the reserves of exchanges increase and BTC prices rise, a price recovery may well be on the cards. On the other hand, “buy the dip” social activity has suddenly increased after a long decline. This could be a sign that the trader is waiting for a local bottom to enter the position.
The presented content may contain the author’s personal opinion and is subject to the market situation. Do market research before investing in cryptocurrencies. Neither the author nor the publication is responsible for your personal financial loss.