Binance’s users have deposited $1.65billion in stablecoins. A large amount of money is seen by many as a sign that the market will be re-energized following the recent selloff.
Nearly $1 billion worth of Ether was deposited.ETHCryptoQuant is a blockchain analytics company that tracks withdrawals. This was also the second month in a row that the net deposits of stablecoins on the exchange surpassed $1.5 billion. “underscoring a renewed wave of capital entering the spot market,” wrote Amr Taha, CryptoQuant.
Binance is the largest cryptocurrency exchange in terms of trading volume. It’s closely monitored for any signs that could indicate broader changes. It processed nearly $6 billion worth of trades on Tuesday. Bybit was the runner up. CoinMarketCap.
Stablecoins, the most popular funding method for crypto traders, are typically traded on exchanges to indicate a willingness to invest in digital assets.
On Tuesday, the timing of crypto market prices was noteworthy. extended their early-week slumpBitcoinBTCEther, a cryptocurrency that was boosted by the comments of Federal Reserve Chairman Jerome Powell indicating he would be ready to lower interest rates for September, gave back all Friday gains.
Recent market turmoil was caused by a large wave of Bitcoin liquidations following a weekend sell-off. when a whale offloaded 24,000 BTC The sales pressure was intense on Sunday.
TradingView data shows that the BTC price fell briefly below $109,000 Tuesday.
Related: Bitcoin late longs wiped out as sub-$110K BTC price calls grow louder
Most significant Bitcoin-M2 difference in the past two years
Bitcoin’s early-week slump stood out as it marked the sharpest deviation in two years from its typically close alignment with the global M2 money supply — a key measure of broad money circulating in the economy.
The pandemic has been ongoing since the outbreak. Bitcoin has shown a strong correlation with global M2The price trend is usually reflected in the market two to three months later, giving traders a reliable indication of short-term trends.
That said, as Real Vision founder Raoul Pal — one of the first to highlight the relationship — noted, the longer-term correlation is stronger when measured against total global liquidity, rather than M2 alone.
The steady withdrawal of US-based spot ETFs has also been a major factor in the recent volatility of Bitcoin. According to CoinSharesBitcoin ETFs experienced outflows in excess of $1 billion during the past week.
It was Monday that the products finally saw daylight. first day of net inflows in six sessions.
Magazine: Stablecoins in Japan and China, India mulls crypto tax changes: Asia Express
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Source: cointelegraph.com
