Key Points
- Bitcoin and the wider crypto market experienced a brief surge before falling again on October 20.
- The selling pressure of Bitcoin on Binance has reportedly decreased significantly.
On October 20, Bitcoin, along with the broader cryptocurrency market, experienced a short-lived increase before the bears regained control.
The global cryptocurrency market cap fell by 3% to $3.66 trillion. Bitcoin dropped from its daily peak of over $111,700 to $108,000 again.
Decreased Selling Pressure
CryptoQuant analyst Burak Kesmeci noted a sharp decline in Bitcoin selling pressure on Binance.
According to Kesmeci’s chart, the overall Bitcoin net flows into Binance have been negative on average over the past 30 days. This movement is interpreted as a sign of “accumulation phases” despite market instability.
Kesmeci wrote, “Daily noise doesn’t define the trend — the 30-day average does.”
Market Uncertainty Continues
Bitcoin is being withdrawn from Binance, but the buying force remains relatively weak. The leading exchange recorded $108 million in USDT inflows over the past 24 hours, according to CoinGlass data.
Conversely, the net flows of USDT to the top 13 exchanges, tracked by CoinGlass, remained negative, recording a net outflow of $93 million over the past day.
Despite the bullish on-chain data, the market has been influenced by negative macro events.
The new 100% tariff threat on China, which triggered $19.35 billion in liquidations and a $400 billion selloff, continues to be a major negative catalyst for the cryptocurrency market.
Even the bullish expectations of two upcoming macro events on October 21 and 22 couldn’t maintain the bullish momentum.
At this point, the crypto market is driven by short-term trends and is experiencing high volatility. This momentum could continue until there’s macro clarity, allowing investors to make more informed decisions when investing in high-risk assets.
