A sharp shift in on-chain flows has captured market attention, as nearly $900 million in stablecoin flooded into Binance this week while large Bitcoin holders quietly withdrew.
The activity signals a potential change in strategy from institutional players, coinciding with rising political uncertainty in the U.S.
Crypto Capital Rotation Intensifies as Trump-Powell Drama Fuels Risk-On Sentiment
According to a CryptoQuant report, blockchain data shows that large Bitcoin holders, or whales, are pulling back from major exchanges.
In the last 30 days, whale deposits to Binance have plunged by $2.25 billion, down from $6.75 billion to $4.5 billion. This steep decline suggests a significant reduction in sell pressure, as whales historically move BTC to exchanges ahead of large liquidations. Their silence now could be a form of market restraint, potentially reducing the likelihood of a sharp correction.
Source: CryptoQuant
At the same time, capital is rushing in. On July 16 alone, Binance recorded over $895 million in stablecoin inflows, closely trailed by HTX with $819 million. These aren’t retail deposits. The volume and synchronicity suggest coordinated accumulation by institutional players.
With whales stepping back and deep-pocketed buyers stepping in, the conditions are aligning for what on-chain analysts call a “liquidity inversion,” where inflows surge even as traditional sellers hold back. The last time markets saw a similar structure, prices ripped upward.
But this fragile bullish setup is now being shaken by political uncertainty. Rumors emerged this week that Donald Trump had discussed firing Federal Reserve Chair Jerome Powell in a closed-door meeting with Republican lawmakers. However, Trump later publicly denied any plans to oust Powell.
The potential removal of Powell, who represents a more hawkish, rate-hike-prone Fed, rattled investors. Bond yields rose, the dollar slipped, and capital began rotating into risk assets like crypto.
Bitcoin Market on Edge as $4.7B in Dormant BTC Moves and Tether Mints $3B USDT
Layered on top of this backdrop is an unsettling movement on-chain. One of the oldest Bitcoin whales has reawakened after more than a decade of silence. This entity, which first acquired 80,000 BTC in 2011, has now moved more than 40,000 BTC, worth approximately $4.77 billion, into a new wallet.
Earlier in the week, the same wallet had transferred 9,000 BTC to Galaxy Digital, followed shortly by another 7,800 BTC.
Galaxy, in turn, moved 6,000 BTC to exchanges including Binance and Bybit. While it’s not yet clear whether these are sales or reorganizations, the movements have stirred fears of an imminent liquidation wave.
Adding to the tension, another dormant wallet containing 1,042 BTC, roughly $122 million, became active after six years. Whether these are cold storage reshuffles or pre-sell positioning, the sudden activity has traders rattled.
On the stablecoin front, Tether has made one of its most aggressive moves in recent memory. On July 16, the company minted $3 billion worth of USDT in under 24 hours, issuing $2 billion first and another $1 billion shortly after.
As these forces play out, Bitcoin is holding steady at around $118,200, down slightly from its all-time high of $123,000 reached earlier this week. Despite the stability, market internals hint at a cooling phase. Exchange inflows are ticking up, a classic signal of profit-taking. Retail investors appear to be rotating funds onto platforms at a faster pace, even as whales slow their deposits.
Yet conviction remains unusually strong among new entrants. Data from Glassnode reveals that first-time BTC buyers now hold 4.91 million coins, up from 4.77 million just two weeks ago. That’s an inflow of approximately 140,000 BTC, more than $23 billion, bought near the top. Short-term holders now carry a cost basis above $100,000 for the first time in Bitcoin’s history, showing aggressive dip-buying during Bitcoin’s recent slide below $116,000.
This growing divergence between the retail enthusiasm and whale caution has analysts on edge. If more legacy wallets begin to liquidate, it could unravel the current structure and spark a swift sentiment reversal. But for now, Bitcoin’s price remains resilient, buoyed by stablecoin inflows, reduced sell pressure, and a macro shift pushing investors toward risk.
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