There are some interesting elements coming from an analysis of Binance’s BTC and stablecoins reserves. Check out the latest reports below.
Binance vs. FTX
The chief executive of on-chain insights platform CryptoQuant says that despite the current rumors surrounding Binance, the exchange’s stablecoin reserves still look quite different than FTX’s did prior to its collapse.
Just in case you don’t know, Ki Young Ju is responding to a Reuters story that broke earlier this week reporting that Binance and its CEO Changpeng Zhao are under federal investigation for potential money laundering violations.
According to the latest reports coming from the online publication the Daily Hodl, the news appeared to have a ripple effect on the exchange’s crypto reserves: “Zhao acknowledged that the exchange saw about $1.14 billion in net withdrawals on Tuesday, but he maintained it was “business as usual” for Binance.”
Here’s what he had to say:
“Things seem to have stabilized. Yesterday was not the highest withdrawal we processed, not even top 5. We processed more during LUNA or FTX crashes. Now deposits are coming back in.”
Ki Young Ju says Binance’s stablecoin reserves look fundamentally different than FTX’s did in November.
“The FTX reserve doesn’t look organic with many in/outflows related to non-FTX wallets, and the reserve dropped -93% already, a few days before the bank run.”
Major crypto moves
Veteran analyst and technical trader Peter Brandt says Bitcoin (BTC) is likely gearing up for a major move after months of quiet consolidation.
In a new YouTube strategy session with trader Tone Vays, Brandt said that Bitcoin’s technicals are suggesting a “washout” to nearly 30% down from current prices.
“If you take the double top that we had in Bitcoin, you take the fact that we penetrated parabola in 2021, you take the descending triangle – all of these things have targets down some $13,000.”
He continued and explained this:
“The double top has a target down there. The descending triangle has a target down there, plus whenever you break a parabola in Bitcoin you have an 80% correction-plus. We’ve had like 75%, 76%. Not that we have to have 80%, but we have had 80%.”