- Bitcoin’s Spot dominance on Binance rose 10x, but exchange inflows signaled short-term sell pressure.
- BTC Network Growth and Stock-to-Flow Ratio declined, weakening long-term demand, and the scarcity narrative.
Bitcoin [BTC] Spot volume on Binance has surged, almost equaling the combined total across all other exchanges.
In fact, Binance’s Spot dominance is over 10x higher than Coinbase’s, as per Joao Wedson, Founder & CEO of Alphractal.
This sharp imbalance highlights a growing concentration of market activity, but interestingly, BTC continued to trade around $102.6K, at press time, showing little follow-through yet on the price front.
Historically, similar shifts in Spot Volume have preceded price rallies, but relying on one venue introduces risks. Therefore, it remains to be seen whether this dominance can support Bitcoin’s next upward move.
Source: CryptoQuant
Is THIS a warning sign of growing sell pressure?
Bitcoin’s Exchange Netflow flipped slightly positive, with 5.9K BTC flowing into centralized exchanges on the 22nd of June.
This contradicts the bullish Spot volume reading. Positive Netflow often signals intent to sell, especially in volatile conditions.
If inflows continue to outpace outflows, BTC could face short-term pressure, even if trade activity on Binance remains high.
Source: CryptoQuant
Are BTC STHs losing confidence?
Realized Cap HODL Waves (1d to 7d) dropped to 3.548%, down sharply from early June’s 8.1% reading. The metric tracks capital held by recent buyers.
Its decline implied that these holders have either taken profits or reduced exposure, signaling cooling interest after the price surge.
Their exit suggests declining near-term conviction, especially after BTC’s rejection near $105K.
Unless fresh capital enters, Bitcoin could struggle to regain bullish momentum.
Source: Santiment
Where are the new users?
Bitcoin’s Network Growth plummeted to 60.4K, marking one of the lowest points in recent months. This metric tracks the number of new addresses, and its sharp decline suggests falling user onboarding.
Such drops often indicate reduced interest in organic network participation. Although trading volumes remain strong, fundamental adoption looks shaky.
Unless network activity recovers, long-term price strength may falter. Historically, healthy network growth has underpinned sustainable bull runs.
Source: Santiment
Does THIS weaken BTC’s scarcity narrative?
The Stock-to-Flow Ratio has declined by 14.28% to 908.89K, signaling easing scarcity. This model links price growth to the decreasing issuance of BTC.
A lower ratio suggests reduced pressure from limited supply, which could dampen long-term bullish expectations. While this metric is not immediate in its effect, it carries weight in shaping market psychology.
Source: CryptoQuant
Binance volume rises, but the market stays cautious
Binance’s growing Spot Volume signals confidence, but broader metrics paint a mixed picture. Inflows to exchanges, cooling short-term holder activity, plummeting network growth, and falling scarcity weaken the bullish outlook.
Therefore, unless new demand and user adoption rebound soon, Binance’s dominance alone may not be enough to sustain upward momentum.
