Bitcoin, Countdown to Crash?...Binance Stablecoin Outflow of $1.7 Billion

▲ Bitcoin (BTC), decline/ChatGPT generated image

Bitcoin (BTC) has stalled at the $78,400 level. At the same time, a massive outflow of stablecoins from Binance, the world's largest exchange, has triggered a warning light for a further crash of over 15%.

According to crypto media outlet NewsBTC on May 3 (local time), Bitcoin recently recovered to $78,000, but its upward momentum is rapidly weakening due to changes in investor behavior. CryptoQuant analyst Crazzyblockk analyzed that the market's buying power is drying up, citing Binance's stablecoin net inflow indicator. Binance recorded a net inflow of stablecoins ranging from $548 million to $1.14 billion daily from April 14 to 22. During this period, Bitcoin's price recovered from $74,000 to $78,000, showing a typical pattern of accumulation of buying funds.

However, the mood reversed from April 28, and stablecoins have been flowing out of Binance for five consecutive days. The daily outflow alone ranges from a minimum of $1.54 billion to a maximum of $1.78 billion. This is a strong signal that market sentiment has turned pessimistic. Crazzyblockk pointed out that this large-scale outflow is the first since January 26. At that time, when Bitcoin was trading around $89,500, $3.2 billion flowed out in a single day, and the price subsequently plunged by about 15%.

Stablecoin outflow signifies the depletion of buying power and is a threat that could undermine the current rebound. Past patterns show a repeated process where stablecoin deposits accumulated, leading rallies, and then funds flowed out again when the cycle was exhausted. Currently, Bitcoin is under strong downward pressure at major resistance levels. If new funds do not flow back into Binance, Bitcoin is likely to face significant downside risk.

Experts unanimously agree that for Bitcoin to stabilize, new capital in the form of stablecoins must re-enter major exchanges such as Binance. There are also warnings that if the current outflow trend continues, the price support level of $76,000 could collapse. The market is now at a crossroads where it must decide whether real buying funds will be injected for further gains or if a large-scale correction, as in the past, will continue.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*