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Binance Stablecoin Reserves Drop $9B as Third Straight Month of Outflows Accelerates

Analysts say the withdrawals signal a liquidity squeeze reflecting risk aversion.

Overview

  • CryptoQuant data show Binance has logged three consecutive months of negative stablecoin netflows, the longest such run since 2023.
  • Net withdrawals totaled about $1.8 billion in December and nearly $2.9 billion in January, with February already near $3 billion halfway through the month and on pace to surpass January if the trend holds.
  • Aggregate stablecoin reserves declined from roughly $50.9 billion in November to $41.8 billion, reducing available on‑exchange liquidity by nearly $9 billion.
  • Lower stablecoin balances curtail the exchange’s capacity to absorb price volatility and can limit the strength of market rebounds.
  • Market observers say these outflows typically indicate capital leaving exchange venues rather than rotating into other crypto assets, aligning with more defensive positioning in a uncertain macro and geopolitical climate.