Binance, the world's largest cryptocurrency exchange by trading volume, recently saw its Bitcoin reserves drop to the lowest level since January 2024, when the price of Bitcoin surged by 90% in just two months. Analysts point out that if this trend were to repeat itself, based on the current price of $98680, the price of Bitcoin could reach $187500 within a few months.

Binance's Bitcoin reserves decline

According to a report by CryptoQuant analyst Darkfost on December 25th, Binance's Bitcoin reserves have dropped below 570000 BTC, the lowest level since January.

When the Bitcoin reserves of an exchange decrease, it usually means that investors are tran**erring Bitcoin to a cold wallet, reflecting their optimi** about the long-term price trend of Bitcoin.

In January of this year, Binance's Bitcoin reserves also dropped to a similar level, and then on March 13th, Bitcoin prices soared to a historical high of $73679 at that time. Darkfost pointed out that:

When there is a large-scale withdrawal in the market, it often means that the market is accumulating positive momentum, which is a positive market signal

Bitcoin dominance hovering below the critical level of 60%

According to TradingView data, the dominance rate of Bitcoin is currently 58.34%, slightly below the critical threshold of 60%.

Some analysts believe that if Bitcoin's dominance rate reaches 60%, it may mean that market funds will begin to shift towards other cryptocurrencies.

Into The Cryptoverse Founder Benjamin Cowen predicted as early as August 18th that Bitcoin would reach a dominance rate of 60% by December, and ultimately succeeded in reaching it on October 30th.

However, since breaking through the psychological barrier of $100000 for the first time on December 5th, the price of Bitcoin has not been able to stabilize above that level, and after reaching a historic high of $108300 on December 17th, it fell back below $100000 on December 19th.