Is the Binance FUD real? On-Chain Data Shows Massive Bitcoin Inflow and Outflow
Binance, the world’s largest crypto-exchange, is embroiled in the controversy surrounding Paxos’s BUSD and compliance gaps. A recent report also revealed that Binance transferred $400 million of partner funds from Binance CEO “CZ” to a trading company.
Binance is considering ending business relationships with U.S. companies due to regulatory pressure in America. CZ stated that “We pulled back on potential investments, or bids for bankrupt U.S. companies for now.”
Binance announced in September last year that it would convert USDC, Pax Dollars (USDP) and True USD (TUSD), into BUSD. It also removed spot and future trading with USDC and USDP and TUSD pairs.
The market cap has dropped by $2.6 billion due to US regulatory action against Binance, Paxos-issued BUSD, and 13.5B now because of it. The market cap has risen to $70.16 and most of it has moved into USDT.
Binance has now switched to TUSD stablecoin as a trade currency. After a recent crackdown on the Paxos-issued USD by U.S regulators, Binance was able to mint $50 million worth TUSD.
According to CryptoQuant data on February 16, the True USD (TUSD), Inflow for all exchanges was at 86 million. Binance accounted over 90% of this TUSD inflow. TUSD has seen an increase in trading activity as a result of the exchange outflow and inflow.
True USD Exchange Inflow (Total), Binance Source: CryptoQuant
Coinglass data shows that Bitcoin longs on the crypto exchange Binance have increased significantly over the past few days. This indicates that investors are buying Bitcoin long-term. The Friday shorts were 48% lower than the longs, which rose to 52%.
CryptoQuant data also indicates a significant increase in Bitcoin outflows from Binance over the past few days. This caused a huge price rally. However, exchange outflow has increased which indicates an increase in volatility due to selling pressure despite the rising Bitcoin price.
The Bitcoin price is currently trading at $24,187. This is 2% less than the previous 24 hours. Today’s Bitcoin price was at $25K, but the hawkish U.S. Federal Reserve caused a selloff.
Also read: Bitcoin Price Bullish to Hit $30K, Predicts on-Chain Data and Crypto Analyst
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