Advertising
Advertising
Advertising

Binance faces $6 billion weekly outflows as traders shift assets

15:20
Binance faces $6 billion weekly outflows as traders shift assets
By: Dakir Madiha
Zoom

The world's largest cryptocurrency exchange, Binance, recorded its biggest weekly asset withdrawal since November 10, with over $6 billion exiting the platform in the week starting January 19, 2026. On-chain data tracked by CryptoQuant shows outflows across multiple blockchains and asset types: Bitcoin saw about $1.97 billion depart, Ethereum $1.34 billion, and Tether's USDT on Ethereum led with $3.11 billion in a single asset.

Analysts view this not as a market exit but as traders repositioning holdings for efficiency. While Ethereum-based stablecoins fled, Tron's network saw the opposite, with $905 million in USDT-TRC20 inflows. Tron has emerged as a favored settlement layer for USDT, handling over $7 trillion in stablecoin transfers last year thanks to near-instant confirmations and fees under a cent, ideal for high-frequency trading.

These simultaneous exits of risky assets and stablecoins buck typical market patterns, where stablecoins usually inflow before major buys. The moves coincided with market jitters: Bitcoin traded between $91,000 and $93,000 after dipping amid concerns over President Donald Trump's announced tariffs on European nations.

Broader digital asset products mirrored the trend, with CoinShares reporting $1.73 billion in net outflows last week—the largest since mid-November 2025. US spot Bitcoin ETFs led losses at $1.32 billion, driven by BlackRock and Fidelity. Historically, such massive exchange outflows signal heightened price volatility, as reduced centralized liquidity amplifies swings. Some traders see it as supply squeeze priming future gains; others as risk aversion.

This fits a surge in self-custody since 2024. Centralized exchange Bitcoin balances dropped to 2.4-2.8 million BTC by early January 2026, down from over 3 million in 2020, per on-chain analysis. Security fears, fueled by past exchange collapses, drive the shift, aided by better hardware wallets and user education.



Read more