Bitcoin Outflows From Binance Hit Three-Year High as BTC Rally Continues

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Bitcoin Outflows From Binance Hit Three-Year High as BTC Rally Continues

Highlights:

  • Binance saw its biggest Bitcoin outflow since 2023, with more than 13,800 BTC leaving in one day.
  • Binance reserves fell by 20,000 BTC in four days as investors kept moving coins off the exchange.
  • Long-term Bitcoin holders are taking profits, but current gains remain far below levels seen at past peaks.

Bitcoin (BTC) withdrawals from Binance have reached their highest daily level since 2023 as investors move more BTC away from the exchange during the latest market rally. CryptoQuant contributor Darkfost reported the shift on September 25, saying Binance recorded a net outflow of more than 13,800 BTC in a single day. The exchange has also seen average weekly net outflows of around 2,000 BTC.

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The move comes as Bitcoin continues to recover from its mid-year lows. At the time of writing, BTC is trading near $84,000, up roughly 8.5% over the past seven days, according to the data.

Bitcoin Price Chart: CoinMarketCap

Binance Bitcoin Reserves Drop by 20,000 BTC

Darkfost said Binance’s Bitcoin reserves fell from around 705,000 BTC to 685,000 BTC within four days. That represents a drop of about 20,000 BTC from the exchange’s holdings. The analyst also noted that Binance holds a large share of the Bitcoin available across major centralized trading platforms, making changes in its BTC reserves closely watched by market participants.

The latest 13,800 BTC net withdrawal was Binance’s largest single-day Bitcoin outflow since 2023. Independent reporting on the CryptoQuant data also confirmed the three-year high and the roughly 20,000 BTC decline in Binance reserves.

Darkfost wrote:

“When outflows become dominant, it indicates that some investors are choosing to hold their BTC themselves. This is behavior often associated with long-term holding, which is a positive sign.”

Moving Bitcoin away from an exchange can reduce the amount of BTC immediately available for trading. However, exchange outflows alone do not prove that every investor plans to hold the coins for the long term. Bitcoin can also move for custody, institutional settlement or other reasons. Still, falling exchange balances can reduce potential selling supply if the withdrawn BTC remains outside trading platforms.

Long-Term Bitcoin Holders Are Taking Moderate Profits

Darkfost also shared an update on Bitcoin’s long-term holders, or LTHs, on September 25. These investors usually hold their BTC for longer periods and are less likely to react to short-term price moves. He said long-term holders are currently realizing profits of around 72%. While that may look high, it is still well below levels seen at previous market peaks. In December 2024, for example, their realized profits were close to 350%.

Darkfost believes the current level is relatively moderate and could encourage many long-term holders to wait rather than increase selling pressure immediately. The exchange data arrives as Bitcoin trades above the $82,000 area that Darkfost identified as an important structural level. BTC recently moved above that zone after previously struggling around it during September.

The latest data suggests many Bitcoin holders are still moving coins away from exchanges rather than preparing to sell. At the same time, long-term holders are taking profits at levels well below previous market peaks.

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