According to a new report by Ki Young Ju, CEO of CryptoQuant, Bitcoin’s spot trading volume on the biggest exchange in the world, Binance, experienced tremendous dominance once it crossed the $20k mark. Bitcoin (BTC) whales are accumulating more of the asset as spot trading dominance has recently increased dramatically.
Whales are accumulating $BTC in #Binance.
— Ki Young Ju (@ki_young_ju) October 19, 2022
Since #Bitcoin price hit the $20k level, @Binance spot trading volume dominance skyrocketed, and it’s now 84%. The second biggest is Coinbase, 9%.
Not sure whether these whales are institutions using prime brokers or crypto OGs for now. pic.twitter.com/544NJo9T1z
In response to the asset’s abrupt decline to the $20k mark in July, spot trading experienced an uptick, reaching a dominance rate of 84% on Binance—levels not seen in more than two years. Furthermore, BTC spot trading on Coinbase, the biggest exchange in America, surged and reached a dominance rate of 9%.
“Since Bitcoin price hit the $20k level, Binance spot trading volume dominance skyrocketed, and it’s now 84%. The second biggest is Coinbase, at 9%,” Ki said in a tweet, along with a chart to support his findings.
The investors driving this enormous increase are unknown at the time of writing. Large crypto investors and prime brokers are mostly accused of being used by institutions that want to take advantage of Bitcoin’s undervalued price situation.
In the last six months, BTC exchange volumes for spot trading have grown by over 2000%, with a 20x increase.
“BTC spot trading volume for all exchanges has increased 20x over the past six months. The volume renewed a year-high last month but there was not much change in the daily closed price, indicating someone(s) is buying all the sell-side liquidity,” Ki noted in a separate tweet.
This rise in spot trading volume may be attributable to a developing whale accumulation tendency or to wash trading brought on by Binance’s recently implemented zero-fee trading policy. Although either or all of the aforementioned scenarios may be true, he emphasizes that Binance, the largest exchange in the world, does not require any kind of wash trading to increase its trade volume statistics.
The current movement of significant quantities of BTC tokens, which has been seen recently, is a trend that suggests whale accumulation.
“Tesla has bought back their #Bitcoin exposure”
— Maartunn (@JA_Maartun) October 19, 2022
That was my dream from last night
?? $TSLA sold $936 million worth of BTC on July ’22
?? Yesterday 48.000 BTC outflow from Coinbase Pro
?? The dollar value is $940 million
?? $TSLA earnings are today
Coincidence? Speculation? ? https://t.co/2dTaLWbkdz
The quantity of Bitcoin sold by Tesla in Q2 2022 and the amount of Bitcoin purchased via Coinbase Pro are disturbingly identical in price.
Recently, 48k BTC worth roughly $940 million was reportedly transferred from Coinbase Pro. The CryptoQuant analyst who originally reported the action expressed hope that Tesla may be the organization responsible in a tweet.
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