Bitcoin is building momentum again as its recent price rally has been followed by a surge in its withdrawal activity on the largest crypto exchange, Binance.
Although the rally has slowed, Bitcoin has continued to trade above the $65,000 mark as its exchange activity on Binance suggests that demand is back to one of its 2026 peak levels.
$589 Million Worth of Bitcoin Exits Binance
Latest data from crypto analytics platform CryptoQuant shows that Binance has recorded its biggest single-day Bitcoin withdrawal in five months.
This large Bitcoin outflow saw a total of 9,030 BTC, worth about $589 million, exit Binance in a single day, signaling a rapid surge in Bitcoin buy activity on Binance.
Oftentimes, crypto withdrawals from exchanges have been traced to investors transferring their holdings into private wallets with the intention of accumulating them rather than selling. As such, the surge in the metric provided a bullish signal for Bitcoin.
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Although large Bitcoin withdrawals do not guarantee immediate price spikes, they signal growing demand, which can reduce the amount of Bitcoin immediately available for sale.
While this typically reflects stronger investor conviction, it potentially drives an upward surge in the price of Bitcoin.
Bitcoin Demand Spikes
The data further revealed that the 9,030 BTC recently withdrawn marks the largest outflow since February 6, when 8,744 BTC left Binance in a single day.
While similar moves have preceded strong price breakouts in the past, the recent spike in the price of Bitcoin might be attributed to the large withdrawal activity, suggesting that Bitcoin could surge further and possibly reclaim $70,000 if the trend persists.
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