Binance Sell Pressure Spikes as Bitcoin Price Drops

Digital asset exchange Binance has recorded surging inflows following a drop in Bitcoin price. This liquidation has wiped out billions in value from the crypto market

Digital asset exchange Binance recorded surging inflows on Monday, as traders signaled a shift in sentiments following a drop in the Bitcoin price.

The exchange inflows indicate a higher volume of assets being transferred into Binance, which could suggest an upcoming sell pressure. This is due to the ease of transactions on centralized exchanges, making them a preferred destination for traders looking to quickly sell their assets.

On the other hand, outflows from exchanges are typically viewed as a hodling strategy, where investors move their assets to other custodians for longer-term holding periods.

Binance Sell Pressure

The latest CryptoQuant report shows the hourly Binance net taker volume took a downturn, further highlighting the sell pressures.

This aligns with the report's findings of large outflows from the exchange, as traders sold off assets to recoup losses. Notably, a majority of the retail assets sold were acquired recently, likely during the period when the asset price surged past $100K.

“The hourly Net Taker Volume on Binance turned sharply negative today, signaling a significant increase in selling pressure. It reached a peak of -$325M, the highest value in 2025, during the release of the ISM PMI and JOLTs Job Openings data, which revealed unfavorable results for risky assets. Monitoring this indicator, along with others, will be essential to determine whether fear is starting to dominate the market…”

The report also points out the impact of macro factors, such as institutional client indices, on digital assets.

Institutions are observed to be moving in line with the financial market, leading to lower inflows into risky assets like Bitcoin. While institutional volumes fueled a portion of crypto gains earlier, they also contributed to the price dips and slower investment inflows.

Last year, participation from institutions was credited with driving Bitcoin to new all-time highs.

Funding Rates Weaken Momentum

Following the BTC price drop from $108K, funding rates have consistently declined, indicating a weaker market condition.

This aligns with the report's findings of substantial capital outflows in the derivatives market, posing a risk to other assets. The impact on altcoins was evident in sharp corrections from double-digit gains to increasing losses over the last 25 hours.

According to the analysis, a continuous trend could result in Bitcoin failing to maintain the $90K support.

“Deeper Corrections: Potentially testing lower Fibonacci levels or psychological thresholds. Conversely, if Funding Rates recover alongside strong buying activity, Bitcoin could stabilize and resume its upward trajectory,” CryptoQuant added.