Over 90% of Bitcoin holders still in profit – Is Fed fueling the fire?
Massive Binance volume during the drop hints at accumulation, not fear.
Key takeaways
Bitcoin’s dip to $113K triggered a massive $7.6B volume spike on Binance, indicating buyers. With Fed liquidity rising to $6.17T, market conditions point toward a potential breakout.
Bitcoin’s [BTC] swift pullback to $113K may have rattled nerves, but the surge in spot buying tells a different story.
Binance alone recorded a staggering $7.6 billion in volume during the drop — evidence of strong hands stepping in.
Despite the dip, over 90% of Bitcoin’s supply remains in profit, and with Federal Reserve liquidity expanding to $6.17 trillion, the macro backdrop is increasingly supportive.
Whale buys or panic sells?
The $7.6 billion in BTC spot volume recorded on Binance on the 1st of August is interesting.
Even as prices dropped from above $118K to nearly $113K, the sheer scale of trading suggests it wasn’t just panic selling; there may have been some serious buying behind the scenes.
We’ve seen this before, like during the 22nd of June spike, which marked a local bottom.
At the time of writing, Bitcoin held steady at around $113.5K, with volume easing off. That drop in activity could point to cooling volatility, and the worst might already be behind us.
Fed liquidity jumps adds to the fire
Alongside Bitcoin’s bounce, the U.S. Federal Reserve’s net liquidity rose to $6.17 trillion, its highest level in months.
This increase means more cash is circulating in the system, which often boosts demand for risk assets like crypto.
Similar liquidity spikes in late 2023 and early 2024 coincided with bullish runs. This fresh rise could support Bitcoin’s next leg up, especially with market sentiment already turning.
Combined with the Binance volume surge, the liquidity boost provides a favorable setup, not just for recovery, but possibly for another breakout.
Over 90% still in profit, and that’s a big deal
Despite the pullback, Bitcoin’s fundamentals remain strong.
At press time, 91.6% of BTC supply is still in profit. Historically, this metric staying above 90% has coincided with price consolidation before major upside moves.
It suggests that the recent dip hasn’t shaken investor conviction, and with spot volumes and liquidity support also in play.
BTC might be closer to a rebound than a further slide.
