Investors Withdraw Significant Amount of Bitcoin from Binance to Move to Coinbase

In the face of the legal challenges confronting Binance, leading to the resignation of Changpeng Zhao, investors are also massively withdrawing Bitcoin to shift to the rival exchange, Coinbase.

Investors Withdraw Significant Amount Of Bitcoin From Binance To Move To Coinbase_65d5cc4b64d4b.webp

Amidst the challenges faced by Binance following Changpeng Zhao’s resignation, Coinbase has emerged as a secure haven for Bitcoin holders. The aftermath of CZ’s departure from Binance witnessed significant fund outflows, leading to a notable depletion of Bitcoin reserves on the exchange. This decline, amounting to 5,000 BTC on November 21st, raised concerns among investors about a potential bank run on Binance.

In response to the uncertainties surrounding Binance, a surge in BTC inflow to Coinbase was observed over the past 48 hours, as investors sought a more stable platform. Notably, on the same day Binance experienced a 5,000 BTC reduction, Coinbase’s BTC reserves increased by an impressive 12,000 BTC.

According to a recent report by the pseudonymous CryptoQuant analyst Gaah, these additional coins were formerly held on Binance, further emphasizing the shift of confidence towards Coinbase.

1700790239

The heightened activity on Coinbase during the two-day period is substantiated by the Coinbase Premium Index (CPI), which saw a substantial 100% increase between November 21st and 22nd. The CPI, a metric gauging the price differential between an asset on Coinbase and Binance, underlines the growing preference for Coinbase among investors seeking stability amid Binance’s challenges.

1700790285

A positive and upward-trending Coinbase Premium Index (CPI) for an asset signifies robust buying pressure from institutional investors on Coinbase. Currently, as of press time, BTC’s CPI stands at 0.04, indicating sustained buying interest on the platform.

Related: Bitcoin’s Halving Looms Closer: Network Strengthens with Record-Breaking Hash Rate

Simultaneously, the Coinbase Premium Gap for BTC experienced an uptick following Zhao’s confirmation of his announcement. This metric gauges the disparity between BTC’s prices on Coinbase Pro and Binance. A positive and rising Premium Gap denotes that BTC is trading at a premium on Coinbase Pro, further underlining the platform’s appeal.

1700790326

Despite the recent resurgence of bear activity on November 6th, marked by the crossover of the Moving Average Convergence/Divergence (MACD) line below the trend line, the bears have not fully dominated the market. This event signaled the onset of a new bear cycle. Subsequently, daily accumulation in the spot market has witnessed a noticeable decline since that pivotal day.

1700790367

The Relative Strength Index (RSI) and Money Flow Index (MFI) indicators for BTC have exhibited a downward trend as profit-taking activity intensifies. However, it’s noteworthy that these indicators still maintain positions above their respective center lines, indicating that the bulls have not been entirely displaced. Despite the recent challenges, the overall market sentiment suggests a continued presence of bullish forces.

5.0/5

(100 votes)

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Azcnews

News | Bitcoin | Editor Choice

Bitcoin Rises to $65,000 Just Hours Before Halving

Bitcoin surged to $65,000, experiencing a nearly 8% fluctuation in just a few hours, amidst signs of easing tensions in Iran.

Azcnews (3)

News | Bitcoin | Editor Choice

Analyst Plan B Predicts Bitcoin’s Future After Halving Event

Renowned analyst Plan B has made a prediction about Bitcoin's price in this cycle. He believes that this fourth halving event will not differ much from the previous halvings in history.

Azcnews

News | Bitcoin | Editor Choice

Bitcoin Drops as the World Hosts Halving Parties

The excitement of Bitcoin Halving parties stretches from El Salvador to Switzerland, with users celebrating a pivotal milestone in leading the market.

Azcnews (2)

News | Bitcoin | Editor Choice

Bitcoin ETFs Continue to See Withdrawals Ahead of Halving Event

US Spot Bitcoin ETFs continue to experience outflows in recent days, with the crucial Halving event just about two days away.

Azcnews

News | Bitcoin | Editor Choice

Bitcoin Rises to $64,000 Amid Market Optimism

Prominent analysts are optimistic about Bitcoin, as the world's largest cryptocurrency rebounds above $64,000.