Binance Bitcoin Reserves Surge To 579,000 BTC – Signal Of Profit-Taking Or Bullish Liquidity?

[Ben Graham]

Bitcoin (BTC) created a fresh all-time high (ATH) yesterday, touching $124,474 on Binance before stabilizing around $118,000 at the time of writing. Meanwhile, BTC reserves on Binance have surged significantly, raising concerns about a potential price correction.

Bitcoin Reserves Spike On Binance: Time To Worry?

According to a CryptoQuant Quicktake post by contributor Arab Chain, Binance’s Bitcoin reserves have seen a sharp increase in recent months. The exchange holds the largest BTC reserves, supported by its high liquidity and the largest trading volume in the market.

From the end of July until today, Binance-based BTC reserves have reversed a previous downtrend, climbing to 579,000 BTC. Arab Chain shared the following chart illustrating how BTC reserves – after a period of scarcity – have reversed course and now signal a short-term warning.

Notably, BTC reserves on Binance had previously declined by approximately 50,000 to 60,000 BTC, a 9% to 10% drop from the 2024 peak to the July 2025 low. Recently, reserves recovered slightly, rising by 25,000 to 30,000 BTC, an increase of 5% to 6%.

Despite this recovery, BTC reserves remain well below the peaks of late 2024, indicating that structural scarcity has not yet fully dissipated. Arab Chain highlighted two potential reasons for the recent spike in reserves.

First, profit-taking or short-term supply could increase when traders – including whales and market makers – deposit BTC on exchanges. They may do this to sell part of their holdings or to use the digital asset as collateral in derivatives markets.

Second, a liquidity boost for BTC can occur when growing demand leads to the replenishment of liquidity pools. Market makers may also rebalance their portfolios to help smooth price spreads. The analyst concluded:

In practice, if daily or weekly reserve increases persist alongside high positive funding rates and rising open interest, the likelihood of a short-term correction grows. However, if reserves stabilize or decline quickly, this would suggest renewed scarcity and a continuation of the uptrend.

BTC Rally Losing Momentum?

BTC pulled back from its recent ATH, trading slightly above $118,000 at the time of writing, signaling a short-term price correction. Some analysts warn that this might indicate the flagship cryptocurrency is losing momentum.

In addition to rising exchange reserves, the Binance whale-to-exchange flow metric also points to increased selling pressure. The spike in Binance miner distributions reinforces this signal.

That said, some analysts remain cautiously optimistic. Axel Adler notes that BTC’s current market structure makes a severe price correction unlikely. At press time, BTC trades at $118,464, down 0.8% in the past 24 hours.