Bitcoin outflows from Binance increase as BTC price holds near $110K, signaling reduced selling pressure and shifting investor behavior.
Bitcoin is experiencing renewed selling pressure with a 3% drop in the last 24 hours, now trading at around $107,500. This comes as the broader crypto market also faces losses, with major altcoins like ETH, SOL, XRP, and BNB falling 3–5%. At the same time, the U.S. government shutdown may end soon, and the Federal Reserve is expected to announce rate cuts next week.
Bitcoin Sees Selling Pressure While Outflows From Exchanges Rise
The recent drop in Bitcoin price has triggered over $250 million in long liquidations, contributing to $320 million in total crypto liquidations. The market-wide decline comes amid growing concerns around macroeconomic conditions and pending U.S. policy moves.
Selling Pressure Fades as Binance Netflow Turns Sharply Negative
“This suggests that investors prefer holding over selling, which typically aligns with accumulation phases in market cycles.” – By @burak_kesmeci pic.twitter.com/gxN48Jhc2v
— CryptoQuant.com (@cryptoquant_com) October 21, 2025
However, data from CryptoQuant suggests that Bitcoin outflows from exchanges, particularly Binance, are on the rise. Investors appear to be moving their BTC holdings to cold storage, indicating lower intent to sell. This trend could point to growing investor confidence and possibly reduced downside pressure on the Bitcoin price.
On-Chain and Volatility Data Point to Market Stabilization
On-chain data from the past 30 days shows a steady drop in exchange reserves, suggesting that more investors are withdrawing their coins. This movement aligns with behavior typically seen during periods of consolidation or preparation for long-term holding.
Hassett believes the US government shutdown is likely to end sometime this week. 🇺🇸
The shutdown is now in week three.
Resolving the government shutdown will restore data flow, enabling clearer Federal Reserve decisions and likely supporting rate cuts that increase liquidity…
— Ted (@TedPillows) October 20, 2025
Crypto analyst Ted Pillows also pointed to a sharp decline in the CBOE Volatility Index (VIX), which has dropped 36% from last week’s high. A falling VIX often indicates lower market fear, which may support a more stable environment for crypto assets, including Bitcoin.
Market Watches for Shutdown Resolution and Fed Rate Decision
White House economic adviser Kevin Hassett stated that the ongoing U.S. government shutdown may end this week. According to prediction market platform Polymarket, traders now expect a likely resolution by November 5.
This potential outcome may allow progress on several delayed policy issues, including cryptocurrency regulations. Meanwhile, expectations for upcoming Federal Reserve rate cuts remain high, with experts forecasting a 50 basis point cut before the end of 2025.
At the same time, external factors such as ongoing trade tensions between the U.S. and China continue to influence market sentiment. Former President Donald Trump recently threatened a 155% tariff on Chinese goods, raising concerns around broader economic stability.
