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- Binance faced dual liquidation waves removing over $150M in leveraged Bitcoin longs, flushing out weaker market participants.
- Tether minted 2B USDT and 17,000 BTC exited Kraken, signaling institutional moves and shifting liquidity dynamics.
A major wave rocked the crypto derivatives market again when over $150 million in long Bitcoin positions on Binance were wiped out in a matter of hours.
On-chain analyst Amr Taha on CryptoQuant explained that two waves of liquidations hit traders who entered late with high leverage. The price briefly fell to around $111,400 and then again to $110,400.
Once the margin requirement was not met, the system immediately forced their positions to close. This is the classic risk of trading with high leverage: the slightest price reversal can wipe out capital.
Weak Hands Flushed Out in Binance Long Squeeze
This phenomenon is certainly not unprecedented. Previously, we highlighted a major long squeeze on Binance a few days ago that wiped out over $70 million in late positions. At the time, open interest and taker volume immediately plummeted, creating healthier market conditions for the next move.
Amr Taha called this a “filtering process,” where weak participants were forced out, leaving room for investors with more disciplined strategies.
On the other hand, CNF also reported that Bitcoin was hit again last weekend as whales diverted significant funds from the market. In fact, the shift in fund flows to Ethereum fueled speculation about a possible altcoin season taking shape.
However, following this wave of selling pressure, signals emerged in the opposite direction. For two consecutive days, Tether minted $1 billion USDT on the Ethereum network.
According to Taha, large-scale stablecoin minting is usually in preparation for institutional demand. Institutions need liquidity that can be mobilized quickly, and USDT serves as a key bridge for immediate entry into both Bitcoin and Ethereum markets.
Furthermore, the large-scale availability of stablecoins often signals the market’s readiness to absorb pressure and prepare new energy for the next rally.
Bitcoin Outflows Signal Institutional Accumulation
Furthermore, there was striking movement on-chain. On-chain data shows over 17,000 BTC withdrawn from Kraken on August 28, equivalent to $1.75 billion.
Usually, outflows of this magnitude do not immediately indicate selling. Instead, it’s often associated with transfers to cold storage, which is synonymous with institutional accumulation.
In other words, Bitcoin leaving exchanges isn’t immediately available for trading, thus suppressing potential supply in the spot market. According to Taha, this pattern aligns with the post-liquidation trend, when large players absorb assets released by retail or overleveraged traders.
Taken together, the picture emerges quite clearly: the market is undergoing a massive reset. Massive liquidations are removing fragile leverage, while an influx of newly minted USDT provides fresh fuel. At the same time, the exit of thousands of Bitcoin from Kraken is a strong signal that the asset is shifting into more patient hands.
Meanwhile, as of press time, BTC is changing hands at about $109,941.98, down 2.62% over the last 24 hours and 7.02% over the last 30 days.
