Title: Over 613,000 BTC Withdrawn from Binance — Imminent Supply Squeeze Threatens to Shake Market
Bitcoin’s available supply on Binance has plummeted to its lowest point in a year, with more than 613,000 BTC withdrawn from the platform. This massive outflow signals a tightening of supply that could lead to a significant price surge, especially as the market nears a critical point where billions of dollars in short positions are at risk of liquidation.
According to the latest on-chain data, the Bitcoin reserves on Binance have dropped dramatically to approximately 613K BTC — a level not seen since July of the previous year. This sustained decline in exchange holdings suggests that investors are moving their assets into self-custody, reinforcing a strong sentiment toward long-term holding and reducing the circulating supply available for trading.
With Bitcoin currently trading around $111,600, the shrinking availability on exchanges could amplify any price movement. As fewer coins remain accessible for sale, the market becomes more reactive to upward pressure, especially if demand continues to grow. This situation is setting the stage for what could be a powerful rally, fueled in part by a looming short squeeze.
A critical level lies just above: if Bitcoin’s price breaks past $116,000, approximately $4.8 billion worth of leveraged short positions stand to be liquidated. This potential mass liquidation could create a feedback loop, in which forced buybacks from liquidated shorts drive the price rapidly higher, compounding bullish momentum.
The Bitcoin Liquidation Map highlights this “liquidation cluster,” identifying it as a key zone of vulnerability for bearish traders. As price edges closer to this level, it increases the likelihood of a cascade of liquidations that could force short sellers to exit their positions at a loss, further accelerating upward price action.
Technically, Bitcoin is also showing signs of bullish recovery. At the time of writing, the asset was testing resistance near the 50-day Exponential Moving Average (EMA), hovering around $113,200. Indicators like the Relative Strength Index (RSI) remain in a neutral zone, but the Moving Average Convergence Divergence (MACD) is approaching a bullish crossover — a potential signal of increasing upward momentum.
Despite these positive signals, trading volumes remain moderate, indicating that many participants are waiting for a decisive breakout above resistance before entering the market. If BTC can firmly close above $113K, it could pave the way for a push toward $116K, setting off the expected short squeeze.
The current scenario points toward a classic setup for a supply shock. With fewer coins on exchanges and rising market demand, price discovery becomes more volatile. This dynamic favors holders and long-positioned traders, while increasing the pressure on those betting against Bitcoin.
Historically, such declines in exchange balances have often preceded major bull runs. When traders remove large amounts of BTC from centralized exchanges, it typically reflects confidence in long-term value rather than a desire to sell in the near future. In essence, the less BTC that is liquid and readily available, the more susceptible the market becomes to demand-driven price increases.
This potential for a supply crunch is further reinforced by macroeconomic factors. As regulatory uncertainty around centralized platforms persists and self-custody becomes more popular among institutional and retail investors alike, more coins are being withdrawn from exchanges. This trend not only reduces sell-side pressure but also reflects a broader shift in investor behavior toward long-term asset protection.
In addition, the upcoming Bitcoin halving event, expected within the next year, could exacerbate the supply problem. The halving will reduce the block reward for miners, thereby decreasing the rate at which new BTC enters circulation. Combined with the current withdrawal trends, this could significantly limit available supply just as demand begins to intensify.
Another point to consider is the broader derivatives market. With billions in open interest tied to short positions, any upward price spike could trigger a chain reaction of stop-loss orders and forced liquidations. This would inject even more buy pressure into the market, amplifying the rally.
Furthermore, institutional involvement in Bitcoin has been growing steadily. With more companies adding BTC to their balance sheets and traditional financial products like ETFs gaining traction, the demand for Bitcoin is diversifying and deepening. If this trend continues while supply remains constrained, it could create a perfect storm for a prolonged upward trend.
In conclusion, the withdrawal of over 613,000 BTC from Binance marks a significant shift in market dynamics. With fewer coins available for trading, increasing demand, and a large pool of vulnerable short positions, Bitcoin is approaching a critical inflection point. If price breaks above $116K, the resulting short squeeze could serve as a catalyst for the next major leg up in the crypto market.