Bitcoin’s recent surge saw the flagship cryptocurrency retest the $122,000 mark before pulling back. At the time of writing, BTC trades near $119,053, marking a short-term correction after hitting multi-month highs earlier this week.
Market participants are now weighing whether this move signals waning bullish momentum or simply a healthy pause in the ongoing rally. Analysts are closely monitoring exchange volume concentration, with Binance’s market share emerging as a key metric.
Binance Dominance Raises Questions
According to CryptoQuant analyst BorisVest, Binance’s share of global trading volume offers critical insight into Bitcoin’s ability to hold new highs. Historical data show that in 2024, the first year, an all-time high (ATH), overall crypto market volumes surged, and Binance’s trading activity more than doubled that of all other exchanges combined.
When BTC retested ATH levels later in 2024, trading volume increased across multiple platforms, but Binance still led in total market share.
However, during Bitcoin’s mid-2025 record high, total market volume failed to show the same broad expansion. While Binance maintained nearly twice the volume of other exchanges combined, the lack of wider participation sparked concerns about the rally’s depth.
BorisVest noted that historically, ATHs backed by broad market volume growth indicate stronger conviction, while dominance from a single exchange may limit long-term momentum.
On-Chain Metrics Suggest Gradual Rally
In a separate analysis, CryptoQuant analyst Avocado onchain reviewed Binary Coin Days Destroyed (CDD) — a metric that tracks the movement of long-dormant coins. After a brief uptick, Binary CDD has turned lower while Bitcoin trades in a sideways pattern.
Historically, rising Binary CDD often signals increased selling by long-term holders, leading to corrections. However, Avocado onchain cautions that recent market changes — including shifts in custody solutions, OTC trading, and institutional participation — make direct comparisons more complex.
In current conditions, the analyst sees signs of a “stair-step” rally, where prices climb gradually with periodic cooling in speculative activity. This slower pace could help sustain buying power over the longer term and avoid sharp reversals.
Other on-chain indicators show that long-term holder selling remains muted, suggesting minimal pressure to liquidate positions at current prices. This supports the view that while near-term trading may be range-bound, the broader market trend still has upside potential — provided participation broadens and investor demand holds.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
