Bitcoin Volume Surge on Binance and Rising Fed Liquidity Suggest Potential for Market Rebound

• Bitcoin’s $7.6B Binance volume spike during the dip highlights robust buying activity.

• Over 90% of Bitcoin’s supply remains profitable, signaling sustained investor confidence.

• Federal Reserve liquidity increase to $6.17 trillion supports risk asset demand, including crypto.

Bitcoin’s $113K dip triggered a $7.6B Binance volume surge amid rising Fed liquidity at $6.17T. Discover why this signals strong market support and a potential breakout.

Bitcoin’s $7.6 Billion Spot Volume Surge on Binance Amid Price Dip

Bitcoin experienced a sharp pullback to $113K on August 1st, yet Binance recorded an extraordinary $7.6 billion in spot trading volume during this period. This surge reflects significant buying pressure rather than panic selling, indicating that strong hands are accumulating BTC at these levels.

Is the Volume Spike Driven by Whales or Panic Sellers?

The intense trading activity on Binance suggests that large investors, or whales, were actively purchasing Bitcoin during the dip. Historical data from CryptoQuant shows similar volume spikes coinciding with local bottoms, such as the June 22nd event. This pattern reinforces the idea that the $113K dip attracted strategic buyers rather than widespread panic.

Source: CryptoQuant

Following the volume spike, Bitcoin stabilized near $113.5K with a noticeable decline in trading activity, suggesting reduced volatility and a possible end to the recent correction phase.

How Does Rising Federal Reserve Liquidity Impact Bitcoin?

The U.S. Federal Reserve’s net liquidity recently climbed to $6.17 trillion, marking a multi-month high. This liquidity influx increases cash availability in financial markets, often driving demand for higher-risk assets like cryptocurrencies.

Source: CryptoQuant

Past liquidity surges in late 2023 and early 2024 aligned with Bitcoin’s bullish rallies. The current liquidity environment, combined with strong spot volumes, creates a favorable foundation for Bitcoin’s next upward move.

What Does Over 90% Bitcoin Supply in Profit Indicate?

Despite recent price fluctuations, 91.6% of Bitcoin’s circulating supply remains in profit, a critical indicator of market health. Historically, when this metric stays above 90%, it signals price consolidation phases that often precede significant upward trends.

Source: CryptoQuant

This strong profitability level suggests that investors remain confident, supporting the thesis that Bitcoin is poised for a rebound rather than a prolonged decline.

Frequently Asked Questions

Why did Bitcoin’s price dip to $113K trigger such high volume on Binance?

The $7.6 billion volume surge on Binance during Bitcoin’s dip reflects significant buying activity from large investors, indicating accumulation rather than panic selling.

How does Federal Reserve liquidity affect Bitcoin prices?

Increased Fed liquidity injects more cash into the financial system, often boosting demand for risk assets like Bitcoin and potentially driving price appreciation.

Key Takeaways

• Bitcoin’s $113K dip triggered a $7.6B volume surge on Binance, signaling strong buyer interest.
• Over 90% of Bitcoin supply remains profitable, indicating sustained investor confidence.
• Federal Reserve liquidity rose to $6.17 trillion, supporting risk asset demand and potential price recovery.

Conclusion

Bitcoin’s recent pullback to $113K, accompanied by a massive $7.6 billion volume spike on Binance and rising Federal Reserve liquidity, highlights strong market support. With over 90% of Bitcoin supply still in profit, these factors collectively suggest that Bitcoin is well-positioned for a potential breakout. Investors should monitor these key indicators as the market evolves.