$7 Billion Exits Binance In A Week, Raising Near-Term Volatility Risks

• Binance recorded more than $7 billion in net outflows across stablecoins and major assets over the past 7 days.
• USDT and USDC withdrawals coincided with large outflows from Bitcoin and Ethereum.
• Analysts said shrinking on-exchange liquidity could increase short-term volatility.

Binance saw heavy capital outflows over the past seven days, with billions of dollars in stablecoins and major cryptocurrencies withdrawn from the exchange, according to on-chain data shared Monday.

On X, quant trader CryptoOnchain shared South Korean blockchain analytics firm CryptoQuant data that showed simultaneous withdrawals of both “cash” and crypto assets from Binance, pointing to a broad reduction in on-exchange liquidity.

According to the data, ERC-20 USDT outflows reached approximately $2.26 billion, while USDC withdrawals totaled around $1.24 billion over the period. Bitcoin (BTC) recorded roughly $2.14 billion in net withdrawals, while Ethereum (ETH) saw about $1.35 billion in net withdrawals.

Binance (BNB) traded at $878.82, down 0.92% on Monday. On Stocktwits, retail sentiment around BNB remained in the ‘bearish’ territory, as chatter levels around it dropped from ‘high’ to ‘low’ over the past day.

Liquidity Conditions Tighten

CryptoOnchain said the concurrent exit of stablecoins and major cryptocurrencies suggests capital is leaving Binance rather than rotating between assets internally. The account noted that while reduced balances on exchanges can ease immediate sell pressure, they can also limit available buying power.

CryptoOnchain further said that such liquidity tightening has historically been associated with higher price volatility, as fewer assets are available to absorb large trades. Price discovery may increasingly depend on external flows rather than Binance’s internal order books if the trend continues.

CryptoOnchain made another post, which showed CryptoQuant data demonstrating Ethereum’s Coinbase Premium falling to -0.08, its lowest level since early 2023.

A negative Coinbase premium indicates ETH is trading cheaper on Coinbase than on offshore exchanges. CryptoOnchain said the decline suggests U.S. buyers have stepped back, even as trading activity on Binance remains more active.

Binance has not publicly commented on the recent outflows.

Read also: Crypto Bill Momentum Builds After Swipe-Fee Proposal Is Shelved

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