Bitcoin Rallies 4.54% After Binance Sell-Off, Institutional Inflows

Bitcoin’s recent price movements have been marked by significant volatility, with a notable drop followed by a swift recovery. The drop was driven by traders on Binance, who initiated a sell-off that briefly pushed the price below $100K. This selling pressure opened an opportunity for investors to bid lower, leading to a subsequent rally. The price of Bitcoin closed at $105,577 on the 23rd of June and has since held strong above $105K.

Two key factors contributed to this drop-to-rally movement. First, Binance traders played a pivotal role. According to CryptoQuant, Binance’s Retail Exchange Inflow – Spent Out Value Bands spiked to a 2-year high on the 15th and 19th of June, rising by 25% and 19% respectively. These inflows preceded sharp drops in the Bitcoin price, including a fall to $98,286 on the 22nd of June. This situation typically implies a higher tendency for investors to sell their assets or hold them without trading, possibly transferring them outside Binance into private wallets.

Second, a significant inflow of stablecoins added to the strong demand for Bitcoin. Just as Bitcoin approached support, fresh liquidity arrived in the form of $2 billion worth of USDT minted on the TRON network. Of this amount, $1.24 billion flowed directly into HTX Global, marking the largest single-exchange netflow in recent months. This influx of liquidity was absorbed by Bitcoin, with only minimal amounts flowing into altcoins. As a result, Bitcoin bounced sharply, gaining 4.54% over the next 24 hours. This indicates that both spot and derivatives investors are taking positions by buying the recent dip.

The Bitcoin Market Value to Realized Value (MVRV) Ratio, a key indicator of whether an asset is being bought or sold, showed that buying pressure is dominant. The metric climbed to 2.212, trending higher from recent lows. This level, still below 3.7, often signals room for upside before overvaluation risk sets in. Similarly, the Bitcoin Spot Taker CVD (Cumulative Volume Delta) also supported the bullish outlook, placing BTC in a Taker Buy Dominant zone. These indicators suggest that the upward trend in Bitcoin’s price is likely to continue.

Institutional investors have also been active in the market. In the past 24 hours, ETF traders moved $350 million into Bitcoin, raising their total net asset value to $97.27 billion. This major inflow signals that traditional institutional investors are aligning with the broader sentiment observed in the spot and derivatives markets, further increasing the likelihood of a sustained Bitcoin rally. The question now is whether this will be enough to sustain upward price momentum. The current indicators suggest that the conditions are favorable for a continued rally, but market dynamics can change rapidly, and investors should remain vigilant.