Investors on Binance, the world’s largest cryptocurrency exchange, deposited $1.65 billion in stablecoins, signaling that traders are positioning for a potential rebound in the cryptocurrency market. Large stablecoin inflows often indicate renewed demand for digital assets following recent market sell-offs.
This surge in deposits coincided with nearly $1 billion in Ether withdrawals from Binance, according to blockchain analytics firm CryptoQuant. This marks the second time this month that stablecoin deposits on the platform have exceeded $1.5 billion. “This highlights a renewed wave of capital entering the spot market,” said CryptoQuant analyst Amr Taha.
Stablecoin net daily inflows on Binance have recently spiked, suggesting traders are preparing to invest in cryptocurrencies. Stablecoins act as a primary funding source for digital asset purchases, and their movement onto exchanges typically precedes increased buying activity.
Binance processed over $29.5 billion in trades on Tuesday, nearly six times the volume of second-place exchange Bybit, highlighting its central role in tracking broader market trends.
The timing of the inflows is notable, as cryptocurrency markets continued their early-week decline. Bitcoin and Ether both gave back gains made on Friday after Federal Reserve Chair Jerome Powell suggested that interest rate cuts could be possible in September.
The recent turbulence in crypto markets followed a wave of long Bitcoin liquidations. A major sell-off over the weekend, triggered when a whale offloaded 24,000 BTC on Sunday, created significant selling pressure. Bitcoin’s price briefly fell below $109,000 on Tuesday before recovering to above $111,000, according to TradingView data.
Bitcoin’s early-week slump also highlighted the largest deviation in two years from its usual alignment with the global M2 money supply. Bitcoin has typically mirrored M2 trends with a two- to three-month lag, helping traders gauge short-term price movements.
However, Real Vision founder Raoul Pal noted that long-term correlations are stronger when measured against total global liquidity rather than M2 alone. This suggests that Bitcoin’s price movements may increasingly reflect broader monetary trends.
Another factor affecting Bitcoin’s volatility has been outflows from US-based spot exchange-traded funds (ETFs). CoinShares reported that Bitcoin ETFs recorded over $1 billion in outflows last week. This followed a period of inflows on Monday, marking the first net gain in six sessions and offering a small sign of market stabilization.
Market analysts believe that the combination of stablecoin inflows and ETF dynamics will likely shape crypto trends in the coming weeks. Traders watching Binance see the recent deposits as a potential precursor to increased buying activity across major cryptocurrencies.
Despite recent price swings, the influx of $1.65 billion in stablecoins underscores investor confidence that opportunities exist for buying cryptocurrencies at current levels. Analysts say that continued monitoring of stablecoin movements and ETF flows will provide insights into where the crypto market is heading next.
As the crypto market navigates volatility, Binance’s inflow trends remain a key indicator of trader sentiment and market momentum. With stablecoins ready on the exchange, many investors appear poised to act quickly when conditions favor a rebound in Bitcoin, Ether, and other digital assets.
