Binance Buying Power Hits 2024 Lows as Stablecoin Reserves Fall 18%

• The 90-day Buying Power Ratio has dropped to cycle-low levels of around -0.086.
• Binance stablecoin reserves fell from $50.9B to $41.4B since November.
• Short-term selling pressure is easing, but liquidity remains tight.

Something important is unfolding at Binance, and it centers on liquidity. According to CryptoQuant, the exchange’s 90-day Buying Power Ratio, which compares stablecoin reserves to Bitcoin outflows, has fallen to -0.086. This means the amount of available stablecoin “dry powder” on Binance is at its lowest level in more than a year.

The last time the ratio reached similar levels was in July and August 2024. Back then, Bitcoin was stuck between $54,000 and $68,000, and market sentiment was shaky. Within months, BTC climbed to $102,000 by December.

At the time of writing, Bitcoin is down and is trading near $63k.

Liquidity Is Tightening

At the same time, Binance’s stablecoin reserves have been steadily declining. Since mid-November, nearly $10 billion in stablecoins have left the exchange. Reserves have dropped from $50.9 billion to $41.4 billion, a decline of about 18%.

That brings Binance back to liquidity levels last seen in October 2024.

Stablecoin reserves act as a proxy for buying power. When reserves rise, it suggests investors are preparing to deploy capital. When they fall, it usually signals reduced risk appetite.

Binance still holds around 64% of all stablecoins across crypto exchanges. So when liquidity shifts on a platform of this size, it matters.

Short-Term Stress, Long-Term Balance

In the short term, the 7-day Buying Power Ratio has swung sharply negative, touching extreme levels in mid-February. That reflects intense selling pressure.

However, the 30-day ratio has already rebounded toward neutral territory, suggesting that the acute wave of selling may be cooling.

Meanwhile, the 365-day ratio remains positive at +0.038. That means the broader structural balance between inflows and outflows has not broken down. In other words, the pressure appears cyclical rather than systemic.

The Bigger Macro Picture

Liquidity conditions are also being influenced by broader economic factors. Federal Reserve officials have hinted that strong labor data could support keeping interest rates steady. A tighter monetary environment typically limits flows into risk assets like crypto.

At the same time, capital has been rotating into equities and commodities, particularly as the AI sector expands and precious metals rally.

What Comes Next?

Crypto markets historically move in cycles of compression and release. The current data shows reduced buying power and declining stablecoin reserves. That can act as a headwind in the short term. But similar setups in the past have preceded major upward moves.

The key factor now is whether stablecoin inflows return. A build-up of reserves on Binance would signal fresh liquidity entering the market, and that is often the fuel needed for the next rally.

Related: US Crypto Traders Are More Concerned About Liquidation Risks During Volatility—Survey