“Net Neutral” – Rising Bitcoin Exchange Balances May Be Due to Chinese Huobi Users Blocking

Rising Bitcoin (BTC) balances on stock exchanges may not be a sign that investors are preparing to sell, new research shows.
Unveiling of the latest data Through the exchanges on December 28, the analyst of the chain Glassnode TXMC pointed the finger of new changes in China for balances increasing elsewhere.
Binance ‘absorbs’ orphaned Huobi users
The end of December sees nerves crumble as a BTC price in a range combines with increased flows to exchanges.
A classic indicator that traders are at least arming themselves to reduce risk in the event of further price weakness, Binance has come under special scrutiny as its BTC shares rise.
At the same time, however, Chinese investors are being shut out of international spot trading platforms following China’s continued crackdown on cryptocurrency trading.
Huobi Global, the international arm of the Chinese stock exchange Huobi, barred mainland Chinese citizens from accessing its trading service on December 15. They now have until the end of the month to sell funds, after which a one to two year withdrawal window will be available for them to remove them from their accounts.
“As of 4:00 p.m. (UTC) on December 31, 2021, mainland Chinese users can no longer sell their holdings or conduct transactions involving CNY,” read a blog post published on the day of the shutdown.
“If users have not yet withdrawn sales orders prior to termination, the system will automatically cancel all pending sales orders. The opt-out function will remain available for 1 to 2 years, and notice will be given before it closes. Mainland Chinese users are advised to manage their digital assets as soon as possible. “
As a result, these users could simply move tokens to other platforms, explaining the increase in Binance’s balance.
“Binance has been making noise lately as their exchange balance has increased. My theory is that they are absorbing users from Huobi and elsewhere as China closes some exchanges at EOY,” TXMC commented on a graphic supporting the idea.
“Oddly enough, if you combine the Binance + Huobi exchange balances, they are lateral. Net neutral.
Liquidity challenges
As Cointelegraph reported, concerns about a sell are heightened due to the holiday season with lower volumes and generally shallower markets.
Related: Veteran Bitcoin Hodlers Still Selling Record Amounts of BTC Despite Gains 70% in 2021
This lack of liquidity could exacerbate any sudden movement, with key institutional players only returning next week.
Some nuances remain, however, as retail investors continue to build BTC portfolios, while large investors appear less certain.
A retail-fueled massive sale event is also considered an unlikely event in the future, according to the analysis.