Bitcoin traders could mistake this Binance data change for a rush to sell

Bitcoin is trading near $76,000 ahead of Tuesday's US inflation report, while reported spot selling puts the strength of demand in focus. A warning from data provider Coin Metrics complicates one apparent signal: a larger reported Binance wallet balance can reflect expanded address coverage without fresh coins arriving.

Bitcoin was quoted at $75,871 on CryptoSlate's price page when captured at 10:42 UTC on Nov. 7. That puts $76,000 in view as a rounded market price, rather than an established technical support level.

CryptoSlate's Nov. 7 report cited CryptoQuant analyst Darkfost describing more aggressive spot selling than buying on Binance and Coinbase. Coin Metrics' coverage notice concerns a different measurement and does not invalidate that trading signal.

The upcoming inflation release gives traders a defined window to compare potential selling with actual demand. A balance chart alone cannot show whether holders have just moved coins onto an exchange, or sold them.

In its Nov. 4 notice, Coin Metrics said it planned to update exchange-address data after additional addresses were disclosed. It anticipated significant increases in some hourly supply metrics that day and daily metrics on Nov. 5, particularly for Binance BTC measures in native units and US dollars.

The provider said the planned changes would reflect broader address coverage without a corresponding change in actual exchange holdings. The notice supplies a reason to question an apparent jump, but it does not quantify one.

Coin Metrics' exchange-supply methodology counts balances in identified hot and cold wallets at the end of an interval. It also warns that undiscovered addresses can leave the measure below actual holdings. Identifying an additional wallet therefore changes what the dataset sees, without establishing that a customer has just deposited more Bitcoin.

Dollar-denominated supply adds another moving part: it is calculated from the coin balance and the USD price. A rise in that dollar reading alone cannot isolate an increase in the number of coins.

The next step is to examine deposits, which Coin Metrics defines as assets sent to an exchange during an interval, using addresses it identifies as exchange-owned. Those observations measure transfers. They do not establish that the transferred coins were sold.

Comparability matters here too. Coin Metrics' point-in-time documentation says standard exchange histories can be revised when new addresses are discovered. Point-in-time histories keep past values fixed, but newly discovered addresses still enter coverage from their discovery date onward. Choosing that series does not automatically make every date comparable.

Evidence of execution comes from a different dataset. Coin Metrics' trade records include time, price and amount, plus the taker's side where known. A sell taker is an incoming order that removes a resting bid. That identifies aggressive selling, rather than merely coins held at an exchange.