Crypto traders on Binance are turning bearish as sell orders and deposits rise

CryptoQuant data shows that Binance’s funding rates have been negative for three days, a rare bearish streak in 2025.

Traders on Binance, the world’s largest cryptocurrency exchange, are becoming increasingly pessimistic, with data from the platform showing that sell orders and user deposits have steadily risen.

According to CryptoQuant analyst COINDREAM, this means that short-term confidence has fallen after last week’s historic market crash.

Market statistics point to declining confidence

COINDREAMs analysis revealed that three key indicators on Binance are flashing warning signs. First, the exchange’s perpetual futures funding rates have been negative for three days in a row, which is not a normal occurrence this year.

“If the exchange with the largest trading volume in derivatives shows bearish sentiment, this can have a negative impact on the overall market,” the expert said.

Second, he said the average number of deposits into the exchange is increasing, according to a seven-day moving average. This increase in deposit volume is happening even as prices fall, leading the analyst to conclude that more downward pressure could emerge if the move fails to find support from strong demand.

The third and perhaps most telling metric is the percentage of sell orders in the market, which is quite high. Normally, sales volume drops near the price bottom and shoots above 0.52 around the market tops. Considering that the sell ratio on the Binance market is above 0.52 even after last week’s big price drops, the observer said this could mean selling sentiment among traders on the platform is strengthening.

Recovery is stagnating due to uncertainty in the economy

The current cautious stance should come as no surprise as the crypto market just experienced its worst liquidation in history on October 10th. The downturn has taken more than $19 billion out of the market and affected more than 1.6 million traders.

Although platforms like Binance have since compensated affected users and markets have recovered some of their losses, many observers viewed the event as a major reset. One of them, Doctor Profit, said that the extreme leverage built into the system has now been removed, leaving both bulls and bears in a tougher position. equivalent foot. However, the shift in Binance’s trading behavior suggests that many remain cautious about re-entering the market too quickly.

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Bitcoin and most major altcoins have recovered somewhat, but are still well below pre-crash levels. Crypto commentators are now saying that the next leading indication will be based on broader economic indicators, such as how US stocks will perform in the near future. Some even think Bitcoin could reach new highs if key support levels hold, but COINDREAM’s analysis suggests the easiest path for the asset in the short term could be lower.