Binance Accumulated 41,000 BTC During Recent Bear Run, as 'Permanent Holders' Added 85,000 BTC

Bitcoin's price is currently moving sideways, absorbing the wave of selling that took place over the past week.

Bitcoin’s price action seems to be consolidating after a wave of selling hit the market over the past week. However, a candlestick arrangement on the daily chart is signaling weakness despite a few optimists.

This perspective holds, at least from a technical standpoint, as long as prices remain below the key $60,000 level and the liquidation point around $66,000.

One analysis highlighted interesting on-chain data amid this recovery, revealing that some unnamed exchanges were accumulating bitcoin during last week’s price drop.

It has now emerged that Binance, the world’s largest exchange by client count, was indeed actively buying the dip. According to data from CryptoQuant, Binance increased its reserves by 41,000 BTC during the recent bear run, which saw prices correct from $72,000.

This strategic move by Binance aligns with the exchange’s service, which allows users to instantly convert other tokens into BTC.

Moreover, Ki Young Ju noted that “permanent holders,” which are entities that typically hold onto their coins long-term, have also been accumulating.

These addresses, which exclude spot Bitcoin exchange-traded fund (ETF) issuers, exchanges like Binance and Coinbase, or miners, added 85,000 BTC in the past month.

In contrast, spot Bitcoin ETF issuers reduced their holdings by 16,000 BTC during this period.

While some were offloading their positions, others took the opportunity to buy more, which stabilized prices and boosted sentiment following last week’s drop to $53,500.

However, the German government’s actions have added another layer of complexity.

According to data from Arkham Intelligence, the German government moved an additional 3,250 BTC on July 11, following the earlier transfer of 5,627 BTC to multiple market makers and exchanges, including Bitstamp.

Their decision to sell has put pressure on the coin, slowing the uptrend.

Despite these sustained outflows, a survey by Coingecko shows that a majority of respondents, mainly investors, are optimistic.

Traders and speculators, on the other hand, have mixed sentiments.

While 39% of traders expect prices to recover, another 33.5% are bearish. Most speculators, at 42.4%, also anticipate prices to continue declining.