Binance-Paxos FUD: Massive Outflow of Bitcoin From Binance, What Does It Mean?

The massive outflow of crypto exchange Binance has been caused by regulatory actions taken by U.S. financial regulators SEC/NYDFS against Paxos for Binance’s dollar-pegged stablecoin BUSD.
According to CryptoQuant data on Binance, there was over 16K bitcoin outflow and 11K inflow on February 13. In the meantime, Binance’s BUSD outflow and inflow were 428 million and 352 million, respectively.


It indicates an increase in Bitcoin purchases in the last 24 hour as exchange outflow is comparatively greater. Binance’s outflow is significantly higher than the inflow of BUSD. Users drew $2.8 billion in crypto assets over the last 24 hours and made $2 billion in deposits during that time. This is Binance’s largest daily net outflow since November.
Changpeng Zhao, Binance CEO, tweeted that users are now migrating to stablecoins. Binance will make product adjustments to accommodate this change, including the removal of BUSD as the primary pair for trading. Binance will still support BUSD in the foreseeable future.
Investors began taking action just minutes after Binance CEO’s tweet. Binance saw nearly 3.5K Bitcoin outflows, and large deposits of more than 200 million USD in all CEX.
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Binance Inflows and Outflows. Source: CryptoQuantBinance USD depegged to Tether. BUSD’s market cap fell amid uncertainty. However, the USDT market capitalization has risen to $68.58 billion today (February 13). Binance’s BNB prices were also affected by the news, falling below $280.
Also read: Cardano Whale Transactions Jump in February, Will It Help ADA Rally


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Bitcoin prices have risen due to an increase in Bitcoin outflows from Binance. BTC is currently trading at $21,737. This is 2% more than the $21.4K low.
To decide their next move, traders are waiting for the U.S. CPI data January. The U.S. inflation rate is expected to drop to 6.2% in January, from 6.5% in December.
Also read: The US SEC Could Ban Hedge Funds from Working with Crypto Custodians

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