Update: Whales Move Crypto To Binance, But Buyers Are Missing: Analyst

The amount of crypto sent to Binance rose in the past week, but CryptoOnchain says the other side of the trade, the buyers, are yet to show up.

Large crypto holders have been moving tokens onto Binance, a pattern analysts associate with potential selling, but buying demand remains muted.

So-called crypto whales deposited $2.4 billion near-evenly split between Bitcoin (BTC) and Ether (ETH) to Binance in the past week, the exchange’s largest net inflow in a month, but the “buying power is missing,” CryptoOnchain said in a note to CryptoQuant on Sunday.

“Crucially, this surge in risk-asset deposits was not accompanied by new buying power,” it added, noting that stablecoin net flows were “essentially flat” at an inflow of $42 million for the week, which was mostly tokens moving between the Ethereum and Tron blockchains.

CryptoOnchain said that large transfers of crypto from wallets to exchanges typically indicate either “preparation for selling or the use of these assets as collateral in derivatives markets.”

CryptoOnchain had said earlier on Sunday that it had found a “potentially bearish” signal, with the level of Bitcoin accumulation having stalled since October, while the average size of deposits to Binance had increased.

The average transaction size flowing onto Binance had jumped from around eight to 10 Bitcoin to up to 22 to 26 Bitcoin as whales transferred “substantial amounts” onto the platform, it added.

Meanwhile, outflows from the exchange have seen a “steep decline in the average size of withdrawal transactions,” with the Exchange Outflow Mean fluctuating between the “suppressed range” of 5.5 to 8.3 Bitcoin.

Related: No, whales are not accumulating massive amounts of Bitcoin: CryptoQuant

“In other words, large-scale accumulation and the movement of Bitcoin into cold storage by major holders have drastically decreased,” CryptoOnchain said.

Source: CoinTelegraph