Bitcoin Whales Withdraw 4500 BTC from Binance Amid Supply Crunch Fears

Recent on-chain data indicates that Bitcoin (BTC) whales may be positioning themselves for a potential rally, as evidenced by a significant spike in BTC withdrawals from Binance. This movement, coupled with rising stablecoin inflows to exchanges, suggests growing buy-side liquidity and a bullish market sentiment.

According to a recent analysis, Bitcoin whales recorded one of the largest BTC outflows from Binance this month. On June 16, nearly 4,500 BTC were withdrawn. Bitcoin whales are defined as wallet addresses with substantial BTC holdings. Historical data shows that such large withdrawals from whales often precede price rallies, as they reflect a reduction in BTC exchange reserves, leaving fewer coins readily available for trading.

In addition to this large-scale withdrawal, on-chain data reveals a decline in BTC inflows to exchanges from both whales and retail investors. This combination of major outflows and low deposits could be setting the stage for a Bitcoin “supply crunch.” A supply crunch occurs when the available BTC on exchanges declines sharply, reducing the immediate supply for buyers. This happens when long-term holders or whales withdraw BTC to cold storage, creating upward pressure on price as demand outpaces liquid supply.

In parallel with Bitcoin’s exchange exodus, stablecoin inflows to Binance have surged in recent days. Notably, over $400 million in stablecoins flowed in on both June 13 and 15. Historically, such significant stablecoin inflows have been linked to buy-side liquidity preparation. Large investors appear ready to deploy capital into crypto assets like BTC, reflecting renewed risk appetite. The aggressive Bitcoin withdrawals and concurrent stablecoin deposits create a supply-demand asymmetry. With fewer BTC available on exchanges and growing liquidity to fuel buys, the stage is set for a potential price breakout.

Meanwhile, additional exchange data supports the case for further upside in BTC. For example, the coin has been experiencing consistently negative funding rates on Binance – often a precursor to short squeezes. At the same time, Bitcoin’s long-term holder Realized Cap recently surpassed $20 billion, underscoring rising confidence among seasoned investors. In addition, despite the ongoing BTC rally, retail participation remains relatively low, suggesting further room for growth.

However, short-term holders are showing signs of caution, increasing their selling amid recent price corrections. At the time of writing, BTC is trading at $105,575, down 1.0% in the past 24 hours.