Cryptocurrency markets are facing a significant liquidity drain, with a key indicator pointing to the lowest buying power on the Binance exchange in over a year. According to a CryptoQuant report, Binance's 90-day Buying Power Ratio, which measures stablecoin reserves against Bitcoin outflows, has dropped to approximately -0.086, reaching cycle-low levels not seen since mid-2024.
The data reveals a stark contraction in available capital, as Binance's stablecoin reserves have fallen from roughly $50.9 billion in November to about $41.4 billion—a decline of nearly $10 billion or 18.6%. This reduction in "dry powder" on one of the world's largest crypto exchanges suggests a measurable decrease in immediately deployable capital for entering risk positions. Despite this outflow, Binance still holds an estimated 64% of total stablecoin reserves across centralized exchanges.
The current market context shows the total crypto market capitalization testing key support levels between $2.1 and $2.2 trillion, having declined from a peak near $4 trillion in 2025. The market has broken below its 50-week moving average and is approaching the 100-week average. Analysts note that while short-term selling pressure may be easing, the absence of sustained capital inflows is preventing a clear recovery, leaving sentiment fragile. Broader macroeconomic conditions, including commentary from Federal Reserve member Christopher Waller suggesting a maintenance of current interest rates, are also seen as constraining risk-on capital flows.
Historically, similar lows in Binance's Buying Power Ratio in July-August 2024 preceded a period of consolidation for Bitcoin between $54,000 and $68,000, which was later followed by a rally to $102,000 by December of that year. At the time of the report, Bitcoin was trading near $63,000. The report concludes that a sustained reversal in stablecoin inflows will likely be necessary for a more durable market recovery to develop.
