Arab Chain
Is Bitcoin Rising Due to a Supply Shortage on Binance or Increased Liquidity
In March – May, Binance recorded frequent and sizable peaks in Taker volumes (market orders), signaling active liquidity inflows from both institutions and retail traders, especially at key support levels (notably after the $75K low). In June – August, although prices kept hitting new highs, the magnitude of these Taker peaks declined significantly. This suggests that the recent uptrend is being driven more by reduced supply in the market rather than a surge of new aggressive buying. Limit order volume (pre-set price orders) has remained relatively low throughout both periods, indicating: A lack of significant selling interest close to current price levels. Most trades are being executed through market orders, making price movements more sensitive to sudden liquidity changes. This setup allows for sharp price rallies if supply remains tight but also increases the risk of fast declines if selling pressure suddenly spikes. At the $75K bottom in April, it’s likely that whales and institutions were among the largest buyers, taking advantage of the steep price discount. In the current period, whale-related activity appears less visible in Taker orders, suggesting they may now be in a monitoring or gradual distribution phase rather than aggressive accumulation. This pattern is worth watching, as any sudden increase in whale-driven sell orders could trigger a rapid correction. The absence of strong Taker volumes may indicate cooling demand from new buyers Heavy reliance on market orders makes the price more volatile Any shift in sentiment among major Binance players could quickly reverse the trend. The Bitcoin market on Binance has transitioned from a strong rebound phase fueled by heavy liquidity inflows after April’s low, to a quieter rally in recent months driven mainly by limited supply. This environment supports further upside as long as supply remains constrained but is highly sensitive to increased selling activity