Binance Users Withdraw Millions as Bitcoin Bulls Spot FTX-Era Signal

Binance Resumes Withdrawals Amidst Significant Outflows, Bitcoin Holds Firm

The world’s largest cryptocurrency exchange by market capitalization has resumed withdrawal services, reporting that users requested nearly $4.7 billion to be moved off the platform. Concurrently, Bitcoin is trading near $78,000, with some analysts drawing parallels to the period following the FTX collapse, which marked a bottom for the previous bear market.

Withdrawal Activity and Net Outflows

Binance began a phased reopening of withdrawals at 06:00 UTC. Within five hours, all 15 networks and assets included in the initial phase were operational. Between 06:00 and 15:30 UTC, users withdrew $4.649 billion, while deposits totaled $1.01 billion. This resulted in net outflows of approximately $3.64 billion. According to the company’s statement, this figure represents about 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 were restored but subsequently declined and began to stabilize. Deposit volumes remained relatively consistent throughout the period. The exchange is continuing to test the remaining networks and assets before proceeding with the next phase of restoration.

Market Reaction and Analyst Comparisons

Today’s reopening follows a significant security incident on Friday, where a hack resulted in the loss of $6.3 billion. This event sent shockwaves through the market, causing Bitcoin to drop from $81,000 to a six-week low of $76,000 and triggering $1.5 billion in liquidations. Binance has committed to absorbing these losses and has already replenished approximately 95% of the affected assets.

Despite the magnitude of the security incident, which is reportedly the largest in USD terms in crypto history, and the substantial outflows from Binance, Bitcoin has not experienced a further significant decline. Several factors are currently working against the cryptocurrency, yet it has maintained relative stability around the $78,000 mark.

This resilience has captured the attention of prominent analysts, including DonAlt, who has compared the current market conditions to Bitcoin’s behavior after the FTX exchange’s collapse four years ago. He noted that Bitcoin fell to around $16,000 following the failure of the Sam Bankman-Fried-led exchange but did not plummet further, despite widespread expectations of a deeper downturn.

DonAlt expressed a “giga bullish” sentiment due to the absence of additional selling pressure, recalling how Bitcoin eventually surged from the $16,000 region to over $100,000. He stated on X, “Hard to be bearish here after having been given the same setup yet again.”

KALEO echoed DonAlt’s sentiment, reposting the tweet and referencing predictions from November 2022 that Bitcoin would fall below $10,000. Those levels were never reached, and many investors remained bearish even as Bitcoin climbed above $100,000. KALEO urged investors to adopt a more bullish outlook, emphasizing, “Don’t be that guy. Be more bullish.”