Bitcoin’s refusal to extent its initial losses are seen as a potentially bullish signal from some analysts.
The world’s largest crypto exchange by market cap resumed withdrawals earlier today and later reported that users requested nearly $4.7 billion to be taken out of the platform.
At the same time, BTC continues to trade close to $78,000, with some analysts drawing comparisons to the post-FTX collapse, which marked the bear market’s bottom.
$3.64B Leaves Binance
CryptoPotato reported earlier today that Binance began progressively reopening withdrawals at 06:00 UTC, and all 15 networks and assets included in its initial phase were operational again within five hours.
It later reported that users withdrew $4.649 billion between 06:00 and 15:30 UTC, while deposits totaled $1.01 billion. This meant that the net outflows were approximately $3.64 billion. The company’s statement stated that this amount represents roughly 2.1% of its $171 billion in assets under management, based on its October 28 Proof of Reserves data.
Binance explained that withdrawal activity surged immediately after services reopened but subsequently declined and began stabilizing. Deposits remained relatively stable all along. The company is still testing the remaining networks and assets before launching the next restoration phase.
Today’s reopening follows the $6.3 billion hack that sent shockwaves through the market on Friday, with BTC tumbling from $81,000 to a six-week low of $76,000 and triggering $1.5 billion in liquidations. Binance has pledged to absorb the losses rather than pass them on to customers and says it has already replenished approximately 95% of the affected assets.
FTX-Like Bullish Signal
Despite the enormous security incident, which actually became the largest in USD terms in crypto history, and billions leaving Binance, BTC didn’t crash further. In fact, there are multiple factors going against it at the moment, yet the cryptocurrency stands relatively stable at around $78,000.
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That reaction caught the attention of popular analysts, including DonAlt, who compared the current setup with BTC’s behavior following FTX’s meltdown four years ago. He recalled that the asset dropped to around $16,000 when the SBF-led exchange failed but didn’t plunge any further despite countless such expectations.
DonAlt said the lack of additional selling made him “giga bullish,” before bitcoin eventually advanced from the $16,000 region to above $100,000.
“Hard to be bearish here after having been given the same setup yet again,” he said on X.
KALEO reposted DonAlt’s tweet and also recalled the predictions for BTC to tumble below $10,000 in November 2022. Those levels never arrived, and many investors remained bearish even as BTC climbed above $100,000.
“Don’t be that guy. Be more bullish,” he emphasized.
