Bitcoin (BTC) traded relatively flat on Friday, extending its week-long consolidation as the market grappled with mixed signals. Adding to market uncertainty, reports emerged that Binance was offloading Bitcoin . On February 10, CryptoQuant analyst Crypto Dan further flagged a dormant Bitcoin wallet that moved 14,000 BTC after being inactive for 7 to 10 years. This development raised speculation about potential sell-offs. However, Julio Moreno, another analyst at CryptoQuant, refuted these claims, stating that on-chain data did not indicate any unusual activity in Binance’s reserves. “Some talk about Binance moving its assets. Looking into our on-chain data, the exchange’s reserves don’t show any odd behavior. Bitcoin reserves drawdown is in line with what other exchanges are experiencing,” wrote Moreno. Despite these bearish signals, Bitcoin whales have taken advantage of the dip to accumulate significant amounts of BTC. On-chain analytics firm IntoTheBlock reported that large investors purchased nearly $3.8 billion worth of Bitcoin during the recent downturn. Notably, on February 5, a net inflow of approximately 40,000 BTC was recorded, indicating strong accumulation by deep-pocketed entities. This trend aligns with a sharp decline in Bitcoin Over the Counter (OTC) desk balances, as noted by CryptoQuant analyst Darkforst. According to Pundit, institutional investors, such as hedge funds and governments, have increasingly turned to OTC desks to acquire Bitcoin without influencing market prices. This surge in demand has driven OTC balances down from approximately 480,000 BTC in September 2021 to just 146,000 BTC today. The ongoing depletion of OTC reserves indicates a sustained interest in Bitcoin among institutional investors. If this trend persists, buying pressure may shift directly to exchanges, positively influencing Bitcoin’s price trajectory. Meanwhile, on-chain data from Santiment has revealed notable divergences in network activity among major cryptocurrencies. On Thursday, the firm noted that while Ethereum and XRP continue to see wallet growth, Bitcoin has experienced a decline of 277,240 non-empty wallets over the past three weeks. According to the firm, this drop appears to be driven by small traders exiting the market amid concerns about further price declines across the cryptocurrency sector. It, however, noted that historically, such downturns in retail participation have signaled strong mid- to long-term price performance, as whales and sharks accumulate coins and strategically drive markets higher when fear and uncertainty peak. However, cautionary signals remain that could hinder Bitcoin’s immediate recovery. Analysts at IntoTheBlock identified a significant resistance level formed by 1.6 million addresses collectively holding around 1.57 million BTC at an average purchase price of $97,200. With many of these holders currently at a loss, the analysts warned that this cohort may opt to sell near breakeven, introducing additional selling pressure and complicating any decisive bullish breakout. At press time, BTC was trading at $107,900, reflecting a 1.78% drop in the past 24 hours.
