Bitcoin (BTC), which reached a new all-time (ATH) high of $124,474 yesterday on Binance, before stabilizing at around $118,000 as I write this, has created another record. Binance BTC reserves are also increasing significantly. This has raised concerns over a price correction.
Bitcoin Reserves Increase on Binance: Is It Time to Worry?
Arab Chain contributed a CryptoQuant Quicktake article that stated Binance has seen its Bitcoin reserves increase dramatically in the past few months. Its high trading volume and liquidity support the exchange’s BTC holdings.
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Binance’s BTC reserves reversed their previous downward trend and are now at 579,000 BTC. Arab Chain shared the following chart illustrating how BTC reserves – after a period of scarcity – have reversed course and now signal a short-term warning.
Binance BTC reserves dropped by approximately 50,000 – 60,000 BTC between the peak of 2024 and the low in July 2025. That’s a 9-10% drop. Recent reserves have recovered slightly. They increased by 25 to 30 BTC or 5%-6%.
BTC reserves are well below peak levels of the late 2024 period, which indicates structural scarcity that hasn’t yet completely dissipated. Arab Chain outlined two possible reasons for the recent surge in reserves.
First, profit-taking or short-term supply could increase when traders – including whales and market makers – deposit BTC on exchanges. The traders may want to do so to liquidate a portion of their digital assets or use them as collateral on derivatives markets.
The second way to boost BTC liquidity is when the demand increases and liquidity pools are replenished. To smooth out price spreads, market makers can also rebalance portfolios. Analyst concluded:
If daily or weekly reserves continue to increase, along with high funding rates that are positive and increasing open interest, then the probability of a correction on a short term increases. Reserves that stabilize quickly or fall rapidly would be indicative of renewed scarcity as well as a continued uptrend.
BTC Rally Losing Momentum?
BTC pulled away from recent ATH. Trading slightly over $118,000 as of the writing time, this signals a short term price correction. Some analysts warn It could be a sign that Bitcoin’s main cryptocurrency has lost momentum.
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Binance’s whale-to exchange flow metric points out that, in addition to increasing reserves of currency, there is also a rise in the amount of money being traded. increased The pressure to sell. Selling pressure spike The Binance mining distributions confirm this.
Some analysts are cautiously optimistic. Axel Adler notes BTC’s market structure is such that a significant price correction seems unlikely. BTC was trading at $118.464 as of press time. This is a 0.8% decrease in 24 hours.

Charts and image are from TradingView.com, CryptoQuant.
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Source: www.newsbtc.com

