Bitcoin’s recent attempt to reclaim the $120,000 mark is facing new headwinds after Binance witnessed one of the largest single-day miner deposit spikes in months.

According to a report by CryptoQuant analyst Amr Taha, on July 25, miners sent over 18,000 BTC, worth more than $2 billion, to the exchange. The move coincided with a $650 million USDC withdrawal event, raising concerns over short-term liquidity pressure despite an otherwise bullish market backdrop.

Miner Behavior Flips

The uptick in miner deposits marks a sharp shift from their previously cautious stance. As recently as June 29, CryptoQuant data showed miners were holding onto their reserves, despite declining revenues and a slight 3.5% drop in Bitcoin’s hashrate. Analysts attributed this “HODL” behavior to strong unrealized profits and expectations of further upside.

However, Bitcoin’s July rally toward $120,000, just a few grand shy of its July 14 all-time high, appears to have triggered profit-taking. Taha suggested that rising operational costs and mining difficulty may also be compelling miners to liquidate some holdings to manage expenses.

He stated that such large inflows to exchanges have historically preceded periods of consolidation, as selling pressure temporarily outweighs new demand:

“While long-term sentiment remains bullish, this sharp inflow and capital movement may precede a period of consolidation or a local correction.”

The expert also noted that Binance had recorded its largest USDC net outflow in more than two months, with $650 million exiting the platform on the same day as the BTC inflow. This stablecoin drain suggests that some traders could be shifting funds to cold storage or alternative venues, potentially reducing immediate buy-side liquidity on the exchange.

Meanwhile, Binance has taken steps to adapt to shifting liquidity conditions. It recently launched Discount Buy, a feature allowing users to purchase crypto at below-market rates, potentially incentivizing accumulation during dips.

Taha suggested in his analysis that the platform is once again “becoming a focal point for short-term supply and liquidity shifts.”

Market Outlook

At the time of this writing, BTC was trading at $117,981, down slightly by 0.7% over the past 24 hours and 0.6% over the past week, while holding an 8.8% monthly gain.

The asset remains within a tight seven-day range of $115,184 to $119,568, perhaps indicating market indecision near key resistance.

Despite the sell-off, Bitcoins long-term fundamentals remain strong. Miner reserves had been climbing since March, with addresses holding 100 to 1,000 BTC accumulating 65,000 BTC, their highest level since November 2024, per CryptoQuant.

For now, traders are waiting to see if the flagship cryptocurrency can hold support above $115,000. If it does, analysts expect another attempt at breaking $120,000, potentially setting the stage for a retest of the all-time high.