Bitcoin inflows to Binance fuel fears of growing sell-side liquidity
The post Bitcoin inflows to Binance fuel fears of growing sell-side liquidity appeared on BitcoinEthereumNews.com.
On-chain data revealed that Monday and Tuesday saw the largest Bitcoin inflows to Binance since the beginning of the year. The surge in BTC inflows also coincided with Bitcoin’s continued downward momentum and triggered FUD, driven by selling pressure building on Binance. Binance saw between 56,000 and 59,000 BTC flowing into the exchange over those two days. The inflows also occurred at a key moment, when Bitcoin was trading near a critical level of $74,000. Bitcoin enters a capitulation phase Dear Binance FUDers, great job. You triggered a $600M net outflow rush, a whopping 0.3% of their total reserves. https://t.co/9JWgjrmKE8 pic.twitter.com/pXPUyC4aSz — Ki Young Ju (@ki_young_ju) February 3, 2026 One analyst argued that a break below that level would technically call the long-term trend into question. The analyst noted that as BTC approaches such a critical level, it creates panic among some investors, causing them to move their digital assets to Binance. Short-term BTC holders also contributed to the inflows sent to Binance. On-chain data showed that the cohort of holders sent around 54,000 BTC to Binance, incurring a loss, on February 2 alone. Large BTC inflows to Binance have historically represented real selling pressure on the spot market. The analyst suggested that, despite the FUD that usually accompanies such panic phases, the current selling pressure is not abnormal given the scale of the recorded flows. The analyst stated that the current flows into Binance suggest that the market is entering a phase of capitulation and panic as BTC becomes oversold. He also noted that such context has historically enabled the formation of a bottom, both in the short-term and over longer horizons. Glassnode data also showed that Bitcoin’s Realized Profit/Loss Ratio is nearing 1, a level that’s historically been linked to market capitulation. At the time of publication, Bitcoin…
Filed under: News - @ February 4, 2026 1:27 pm