Over the past month, crypto investors amassed $1.5 billion worth of Bitcoin on Binance, raising fears of a possible sell-off.
The recent rally in the BTC price could be close to coming to an end in the worst way. The cumulative coin figures suggest the possibility of a Bitcoin sell-off on the horizon. In this sense, the healthy growth of the first part of 2023 could suffer the first strong correction.
Over the last 30 days, the number of coins stored on the centralized exchange (CEX), Binance, has become concerning. According to data taken from Coinglass, some 51,000 coins would have been sent to the aforementioned platform within a month.
The role of CEX in the price of the main digital currency is almost fundamental. Either way, shipping to trading platforms has several readings. The latter means that there are many reasons not to panic.
Possible Bitcoin Selloff Soon?
A clear answer to this question is difficult to give under the current conditions. The motives of large investors are varied and depend on many subjective and individual inclinations. Consequently, knowing if the amount in Bitcoin sent to the CEX will end in a massive sale is somewhat uncertain.
It should not be forgotten that sending large amounts of coins to exchanges is always in danger of liquidation. On the other hand, in accumulation or unknown portfolios, the chances of selling are less.
As noted above, not every time large investors send coins to trading platforms, the goal is to sell. What can be talked about in this case is “possibility”.
The move of Bitcoin in bulk to Binance should not be taken lightly, as the possibility of a sell-off is there.
Selling Pressure Remains Moderate
As reported by the CoinTelegraph news portal, the selling pressure of Bitcoin remains in a normal or moderate state. This suggests that investors are not expressing a greater inclination to sell despite the temptation of a price that remains high. However, the aforementioned portal continues, the issue of sales pressure “could easily change”.
To get an idea of the level of liquidation possibilities, one must see the context of this accumulation of coins in the CEX. Currently, the platform has 51,000 more BTC in their wallets than a month ago. Even from March 10, the amount of coins sent to the platform would be 100,000 BTC. Another aspect that should be kept on the radar is that in the last week, the shipment totaled 22,000 bitcoins.
In other words, any short move that scares investors could lead to the dreaded Bitcoin sell-off. The economic situation in the United States could be one of the catalysts for a bearish sentiment in the crypto market. This Thursday the growth and inflation figures (PCE index) were released during the first quarter of the year and they were frightening.
With this, nervousness and volatility could be just around the corner. It is worth mentioning that most of these coins were sent in transactions of less than 400 BTC each. Movements above these figures totaled a low volume of trade, as shown by the most recent reports in this medium.
By Audy Castaneda
