Binance Data Shows Reason Behind Huge Bitcoin (BTC) Activity
A close look at Binance Bitcoin (BTC) transaction activity would indicate why there have been huge trading volumes recently. BTC saw huge fluctuations in the last one week, with a gap of around $2,000 between weekly high and low level. Despite the huge volatility, the top cryptocurrency witnessed the highest trading activity in over three months. On Tuesday, the BTC trading volume was the highest since the decline in June this year, when the crypto winter atmosphere intensified.
What Binance Bitcoin Activity Shows
There has been a huge rise in Binance spot trading volume, which has apparently led to BTC volume rise. According to Crypto Quant analysis, the spot trading activity on Binance was the reason. The trading pattern has been on a continuous rise ever since the top exchange launched free spot trading. In July 2022, Binance launched zero-fee Bitcoin trading. Also, the price correlation with respect to spot trading on Binance was disturbed in the recent times.
“The ratio between Binance Perp and Spot market is highly price-correlated, but since January of this year, it has become less effective. The BUSD deposit counting has also increased”
Meanwhile, the BUSD deposits have been on a rise while the BTC/BUSD trading volume is increasing. Also, there is a chance that some traders purchased Bitcoin with BUSD. Amid all of this, BTC continues to tread the path of high volatility. In the last one week, BTC showed a price gap of nearly 11% between weekly low and high level. As of writing, BTC price stands at $19,327.79, up 1.77% in the last 24 hours, according to price tracking platform CoinMarketCap.
Exchange 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 looked at the Bitcoin reserves on exchanges, there has been an uptrend on all exchanges as well as in derivatives. As reserves on exchanges keep increasing and BTC price rises, a price recovery could well be on the cards. On the other side, there has been an sudden rise in ‘buy the dip’ social activity after a prolonged decline. This could be a sign of trader anticipation of a local bottom to enter a position.
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