According to CryptoQuants latest data, Binance has reached a new milestone in its stablecoin reserves as it hit an all-time high of $31 billion recently. This marks a significant recovery and growth, as the reserves stood at just $7 billion in June 2023.

Therefore, the latest figure reflects a nearly fivefold increase over six months. Such a surge typically indicates increased buying pressure which, in turn, suggests a strong investor confidence and activity in the market.

As per the on-chain analytic platforms data, current reserve levels, holding steady at around $30 billion, indicate continued market positioning by investors that would potentially support sustained demand and market strength.

All Eyes on Bitcoins Next Stop

This development coincides with Bitcoins potential breakout above $120,000, driven by strong market fundamentals and Binance’s increasing stablecoin reserves. Analysts believe that BTC, currently trading below $94,000 after a 13% correction from its $108,300 all-time high, could peak at $120,000 in January.

Meanwhile, QCP Capital highlighted that Bitcoins spot market has faced notable challenges, with thinner liquidity creating gaps and any recent recovery attempts capped by persistent selling pressure. Momentum in the worlds largest crypto by market cap has waned significantly as the year ends, exacerbated by $1.8 billion in net outflows from spot ETFs since December 19 and a slowdown in MicroStrategys Bitcoin purchases.

This weak price action mirrors broader market sentiment, as major indices like the SP 500 and NASDAQ have experienced sharp declines amid heightened uncertainty around global trade heading into 2025.

Despite the sluggish close, the asset manager said that Bitcoin remains a standout performer in 2024, up 120% and outpacing stocks and gold. Looking to Q1 2025, QCP anticipates institutional asset reallocation in January as a key catalyst for the crypto.

With broader institutional adoption, including university endowment funds, Bitcoins dominance is expected to grow, stabilizing spot price movements and aligning volatility dynamics more closely with equities. Additionally, QCP predicted stronger demand for downside puts for hedging and increased covered call selling on topside gains.

Bitcoin Holder Trend

Even as Bitcoin faced pressure, Glassnodes data revealed that Short-Term Holders (STHs) are still, on average, in a favorable position and hold an unrealized profit of over 7.9%. This suggests that many recent buyers entered the market below the current price levels, with their aggregate cost basis resting at $86,600.

This price level is shaping up to be a key region of interest, as it may serve as both a psychological and technical indicator for local price momentum.

Last week, CryptoQuant founder Ki Young Ju also shed light on a growing trend of Bitcoin whales accumulating the crypto through privacy transactions. Over the past two years, CoinJoin transactions have tripled annually, resulting in increased activity in anonymous transfers.