Increase in Binance trading volume and Fed liquidity surge bolsters Bitcoin analyst's bullish argument
CryptoQuant analyst Amr Taha has presented a cautiously bullish analysis regarding Bitcoin's potential to revisit previous highs, based on recent on-chain data, spot volume trends, and macroeconomic factors.
Taha notes that historically, significant spikes in Bitcoin spot volume on Binance—such as the $7 billion surge on June 22, 2025—have often marked local bottoms or major price reversals, indicating renewed investor demand that could support a bullish continuation.
Additionally, he highlights a notable increase in the US Federal Reserve’s net liquidity, which rose from $6 trillion to $6.17 trillion on a recent Friday. Since net liquidity generally influences risk assets like Bitcoin, this liquidity expansion can facilitate inflows into cryptocurrencies, supporting higher prices.
Despite recent aggressive sell-offs and long liquidations on Binance, which contributed to a sharp market cap pullback from $3.8 trillion, Taha points out that these liquidation-driven sell-offs coincided with negative funding rates on major exchanges. Such negative funding—where short positions pay longs—often reflects a bearish sentiment among retail traders but historically signals potential local bottoms due to overextended bearish positioning, setting the stage for rebounds or bull runs.
Moreover, the substantial $922 million crypto position liquidation event, the largest since February 2025, marked a reset in market bias with reduced leveraged positions, which is typically bullish as it removes excess risk and allows fresh long orders to enter. Taha argues that the combination of these factors—volume spikes on Binance, increased Fed net liquidity, funding rate compression, and liquidation events—suggests the environment is ripe for Bitcoin to break upward toward prior highs, such as retesting the $112,000 support level and potentially moving toward $126,000.
In his bullish case for Bitcoin, Taha published his analysis on the CryptoQuant platform. The price of Bitcoin started the weekend and the new month at a low of $115,000 on August 1. As of this writing, the price of BTC stands at around $112,600, reflecting an over 1% decline in the past 24 hours. However, Taha suggests that the latest jump in the Bitcoin spot volume could represent renewed investor demand and be ultimately bullish for the market leader.
The consensus among market participants is that the price of Bitcoin still has the potential to rise further before reaching its cycle peak. With Taha's analysis pointing towards a bullish market environment, Bitcoin enthusiasts and investors may be keeping a close eye on the cryptocurrency's price movements in the coming weeks.
- Amr Taha's analysis, based on on-chain data and macroeconomic factors, indicates that Bitcoin might revisit its previous highs, with significant spikes in Bitcoin spot volume on Binance often marking local bottoms or price reversals.
- Taha emphasizes that the increase in the US Federal Reserve’s net liquidity, from $6 trillion to $6.17 trillion, can facilitate inflows into cryptocurrencies, such as Bitcoin, which generally responds to net liquidity shifts.
- Despite recent aggressive sell-offs and liquidations on Binance, which coincided with negative funding rates on major exchanges, Taha argues that such liquidation-driven sell-offs, where short positions pay longs, often signal potential local bottoms due to overextended bearish positioning.
- The substantial crypto position liquidation event, the largest since February 2025, marked a reset in market bias with reduced leveraged positions, typically considered bullish as it removes excess risk and allows fresh long orders to enter.
- Taha suggests that the combination of volume spikes on Binance, increased Fed net liquidity, funding rate compression, and liquidation events could make the environment ripe for Bitcoin to break upward toward prior highs, such as retesting the $112,000 support level and potentially moving toward $126,000.
- As Bitcoin's price started the weekend and new month at a low of $115,000 and now stands at around $112,600, Bitcoin enthusiasts and investors are closely monitoring the cryptocurrency's price movements in the coming weeks, given the bullish market environment suggested by Taha's analysis.
