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Cryptopolitan 2025-11-29 16:26:23

Data from Binance shows the market may not be as bad

According to CryptoQuant analysts, there is currently a bullish setup forming as data from Binance shows that things may not be as dire as fearmongers would have most believe. According to a report from CryptoQuant, despite the current state of the crypto market, Binance which has seen its Bitcoin (BTC) reserves experience a sharp decline of 20 billion, dropping from a peak of 71 billion in mid-August to approximately 51 billion. On the other hand, stablecoin holdings have exploded with Tether (USDT) reserves (across TRC20 and ERC20) rising from 26 billion to over 50 billion, a new record. Comparison of Binance’s reserves of BTC, ETH, and XRP to stablecoins on ERC20 and TRC30 standards. Source: CryptoQuant XRP reserves have fallen by about a million dollars, while Ethereum (ETH) reserves have nearly been reduced by half, falling from over 20 billion to below 11 billion, another massive outflow that has been historically interpreted as a long-term bullish signal, indicating investors’ preference for cold storage and a reduction in immediate selling pressure. Binance data says prepare for a strong leg up Analysts have called the declining coin supply + skyrocketing stablecoin reserves a rare combo, which suggests that traders have been taking profits at price peaks and are now waiting patiently on the sidelines with massive “dry powder.” “This volume of stablecoins parked on the exchange acts like a compressed spring; upon a price correction or macroeconomic stabilization, it could provide the fuel for a new explosive move,” one analyst wrote on CryptoQuant. “The market is currently in a phase of armed patience.” The theory makes sense considering that buying power is currently at its highest point in history, with over $18 billion added to reserves in a short period. And when you consider the fact that investors are not cashing out to fiat banks and instead converting to stablecoins and keeping funds on the exchange, ready to deploy, the bullish setup analysts are seeing becomes more apparent. “The market is not losing liquidity; it is reloading,” the same analyst wrote in a separate post on CryptoQuant, adding that “the fact that Binance stablecoin reserves are at an All-Time High suggests that smart money is positioned for a strong re-entry.” There is still selling pressure from weak hands for now, but when it is exhausted, the $50 billion wall of capital is expected to fuel the next major leg up, and the move may happen too quickly for those not positioned like the smart money. Macro is hammering the crypto market The crypto market has taken a proper beating in the past couple of weeks, and analysts are now looking forward to some positive action. With the fear and greed index finally out of the extreme fear range for the first time since November 10, as reported by cryptopolitan, hope is still being threatened by emerging issues such as the pushback from some TradFi gatekeepers. The latest battlefront involves JPMorgan and the S&P, which started after JPMorgan analysts warned in a November note that Strategy could face $2 billion–$8 billion in outflows should it be excluded from MSCI indexes due to its >50% Bitcoin holdings. Users have accused JPMorgan of exploiting the situation by circulating the piece long after it was released to tank Strategy’s stock and frontrunning the market’s reaction by opening shorts on it for profit. It has led to calls for a boycott from industry leaders like Max Kaiser and Grant Cardone. While the industry deals with that development, the S&P, another TradFi powerhouse, has also landed a blow on Tether. According to reports, Tether’s USDT’s stability rating has been changed to “weak” by the S&P Global Ratings, citing increased exposure to Bitcoin and gold. Responding to the subject, Tether’s CEO, Paolo Ardoino, expressed pride at the treatment, implying it was just another attempt from the traditional sector to stifle growth and progress. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

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