$5.56B whale inflows point to short-term bearish crypto sentiment

A CryptoQuant analyst revealed on Thursday that the Whale Flow indicator had recorded a surge in cryptocurrency inflow to Binance over the last 30 days. On-chain data revealed that crypto whales transferred approximately $5.56 billion worth of digital assets into the exchange during the period.

CryptoQuant’s Whale Flow indicator has been rising sharply, and the spike appeared to be driven by large transactions that occurred on October 21. According to the analytics firm, whales moved roughly $1.07 billion on that day.

Increased whale inflow suggests short-term bearish crypto sentiment 

Read the complete breakdown ⤵️https://t.co/pm3vw0dBpg

— CryptoQuant.com (@cryptoquant_com) October 23, 2025

As Binance saw an increase in inflow transactions on Tuesday, Bitcoin’s price rose from $108,000 to $113,000 before retracing back to $108,000. Maartunn argued that the substantial transfers on the Binance exchange likely influenced the price movement. The increase in whale inflows to Binance also signals a short-term bearish sentiment for Bitcoin and other altcoins.

The two-way price action squeezed both leveraged bullish and bearish plays, wiping out approximately $600 million in bullish and bearish futures bets. On-chain data revealed that $355 million in long positions got liquidated, while $301 million in shorts closed out on Tuesday.

Bitcoin accounted for approximately $340 million of the liquidations, while Ethereum incurred $200 million in losses.

“The bulls failed to push the market above recent highs, and we’re seeing the formation of an active short-term downtrend.”

-Alex Kuptsikevich, Chief Market Analyst at FxPro.

Co-founder and COO at SynFutures, Wenny Cai, argued that the sharp intraday swings across Bitcoin, Ethereum, and major altcoins signal a cautious market sentiment. At the time of publication, Bitcoin is currently exchanging hands at around $109,777, up 1.47% in the last 24 hours. BTC has also dropped by more than 3% in the last 30 days amid the crypto market crash in mid-October.

As Bitcoin holds around the $108K level, continued failure to rise above highlights a weaker market sentiment and persistent hesitation among both institutional and retail participants. However, if BTC’s price maintains the level as support and bounces, markets could switch to bullish and climb towards higher prices.

Glassnode reported on Thursday that there is a cooling of momentum and growing fatigue among traders as BTC trades below short-term support levels. The analytics firm believes the market could enter a prolonged consolidation phase unless prices reclaim those levels soon.

Glassnode analysts also found that long-term Bitcoin holders have been offloading 22,000 BTC per day, which adds pressure to the market. The analysts said such persistent distribution indicates profit-taking pressure from seasoned investors.

According to the analytics firm, open interest has also reached new highs, while sentiment remains bearish. Glassnode concluded that traders are preferring downside protection, with on-chain and options indicators pointing to a cautious and cooling market.

Bitcoin’s supply in profit also plummeted from 98% to around 78% within two weeks, as BTC has failed to move higher above resistance. The drop signals widespread unrealized losses and rising investor caution, which occur when fear dominates the market and selling intensifies.

BNB’s institutional confidence signals a new phase for Binance

CryptoQuant’s latest chart tracking spot retail activity through trading frequency surge showed that BNB has entered one of its most active retail phases since early 2021. The analytics firm noted that institutional confidence and infrastructure adoption in BNB are rising in parallel, echoing past moments of speculative euphoria that were followed by short-term tops.

CryptoQuant argued that Polymarket’s new support for BNB deposits and withdrawals establishes a direct bridge between the Binance Smart Chain and the decentralized prediction market economy. The firm said it signals a deeper integration of BNB into real-world decentralized applications.

The analytics company also noted that apart from Binance, other major platforms like Robinhood have listed BNB, and also, Coinbase is planning to launch support for the BNB Smart Chain. CryptoQuant believes the initiatives will expand BNB’s liquidity and regulatory visibility across U.S. markets.

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