BlockBeats News, October 13th, on-chain data analyst Murphy compared the crash on October 11th with the previous Luna flash crash that led to a deep bear market. The external factors for the previous cycle’s bearish turn included the shift in the Fed’s monetary policy from loose to tight, while the internal factor was the Luna flash crash in May 2022, which directly destroyed market confidence and served as a catalyst for BTC entering a bear market. During the Luna flash crash on May 10th to May 11th, Binance’s BTC balance experienced explosive growth, reaching a peak on May 10th with a daily average inflow of 48,595 BTC, while prices were still falling. This panic-driven exodus behavior, regardless of cost, reflected that investors’ confidence was on the verge of collapse.
In contrast, during the October 11th crash, no significant inflows to Binance were observed. Instead, the daily average outflow remained at 5,338 BTC. Despite the impact of the sudden event, the off-exchange demand, apart from ETFs, did not decrease, and investors still maintained confidence in BTC around $110,000.
On May 10, 2022, among all large BTC transfers, whales with individual amounts exceeding $10 million collectively transferred $980 million to Binance. However, during the October 11th crash, whales with individual amounts exceeding $10 million collectively transferred $380 million out of Binance. Even in this crash, where the theoretical losses for whales were much greater than ordinary retail investors, these large holders chose to continue accumulating BTC rather than exit at a loss.
