Binance Sees Record-Breaking Bitcoin Outflow Amid Rally

Binance has seen its largest Bitcoin outflow since 2023, with over 13,800 BTC leaving the exchange on September 25. This move reduced the platform's reserves from 705,000 BTC to 685,000 BTC in just four days.

This decline is significant, as Binance holds around 30% of Bitcoin available across exchanges. The rapid decrease has sparked speculation that investors may be moving coins into self-custody or longer-term storage, rather than leaving them on the exchange.

Darkfost, an analyst at CryptoQuant, linked the withdrawals to renewed FOMO among investors waiting for a deeper Bitcoin decline. However, Darkfost also noted that large outflows could recur if Bitcoin continues its rally.

The withdrawal coincided with continued U.S. spot Bitcoin ETF inflows, although institutional demand cooled sharply from Monday's nearly $1 billion surge. The move extends the pattern seen during earlier Binance Bitcoin withdrawals, when declining exchange balances drew attention to sell-side liquidity.