Bitcoin reserves on Binance have fallen to their lowest level since January 2024, sparking speculation about whether another price surge is on the horizon.
The world’s largest crypto exchange now holds under 570,000 BTC, a level last seen two months before Bitcoin soared 90% to $73,679 in March. With Bitcoin currently trading at $98,680, a similar rally could push its price to $187,500 in the coming months.
Investors Show Confidence Amid Declining Reserves
The drop in Bitcoin reserves on Binance, noted by CryptoQuant analyst Darkfost on December 25, signals growing investor confidence. When reserves on exchanges fall, it often means investors are withdrawing their Bitcoin to cold storage, suggesting a bullish outlook on long-term price movements.
Earlier this year, Binance saw a similar decline in reserves, which preceded Bitcoin’s massive rally to its then all-time high of $73,679 in March. Darkfost noted that periods of large withdrawals can signal growing positive momentum in the market.
Bitcoin Dominance Nears Critical Threshold
Bitcoin’s dominance in the crypto market currently stands at 58.40%, according to TradingView. This is just shy of the significant 60% level, which some analysts believe could indicate a shift in market dynamics.
Benjamin Cowen, founder of Into The Cryptoverse, predicted in August that Bitcoin dominance would reach 60% by the end of the year. Bitcoin eventually tapped this level on October 30 but has since retreated slightly.
While Bitcoin dominance hovers below this threshold, there is ongoing speculation about whether it could signal a rotation toward altcoins or reinforce Bitcoin’s market leadership.
Struggles at the $100K Psychological Level
Bitcoin recently surpassed the $100,000 mark for the first time on December 5 but has struggled to maintain its position above this key psychological level. Its price has traded below $100,000 since December 19, following a peak of $108,300 on December 17.
Ryan Lee, chief analyst at Bitget Research, believes Bitcoin could break past $105,000 as liquidity returns after the holiday season. He noted that holiday illiquidity often dampens market activity but expects funds to reposition aggressively in January. Lee anticipates Bitcoin’s trading range this week to fall between $94,000 and $105,000.
