TLDR
- Binance processed $1.65 billion in stablecoin deposits as Bitcoin fell below $110,000
- Weekend whale sale of 24,000 Bitcoin triggered market liquidations and selling pressure
- Bitcoin ETFs recorded over $1 billion in outflows while exchange inflows surged
- Trading volume on Binance reached $29.5 billion, six times higher than competitors
- Market shows biggest divergence from global money supply metrics in two years
Binance cryptocurrency exchange recorded $1.65 billion in stablecoin deposits as Bitcoin price fell below $110,000 this week. The massive inflow represents traders positioning for potential buying opportunities during the market correction.
The stablecoin surge marked the second time this month that Binance net deposits exceeded $1.5 billion. CryptoQuant data shows this pattern often precedes increased spot cryptocurrency purchasing activity.
Bitcoin dropped to $109,000 before recovering above $111,000 on Wednesday. The decline followed weekend selling pressure when a major holder offloaded 24,000 Bitcoin in a single transaction.
This large sale triggered widespread liquidations of long positions across cryptocurrency markets. The selling cascade extended early-week losses as traders unwound leveraged positions.
Exchange Trading Activity Surges
Binance processed over $29.5 billion in trading volume during the market volatility. This represents nearly six times the volume of second-place exchange Bybit according to CoinMarketCap data.
The stablecoin inflows coincided with $1 billion in Ethereum withdrawals from the platform. Stablecoins serve as the primary funding mechanism for cryptocurrency traders preparing to purchase digital assets.
Bitcoin’s price movement created the largest disconnect from global M2 money supply in two years. The cryptocurrency typically correlates with broad money metrics with a two to three month lag.
Real Vision’s Raoul Pal noted stronger long-term correlations exist with total global liquidity measures. He was among the first analysts to identify these monetary relationships with Bitcoin pricing.
Institutional and Retail Trading Patterns
US Bitcoin exchange-traded funds experienced over $1 billion in outflows last week according to CoinShares. The institutional selling added downward pressure on Bitcoin’s price during the correction.
Monday brought the first day of net ETF inflows in six trading sessions. This shift provided some stabilization to cryptocurrency market sentiment.
Federal Reserve comments about potential September interest rate cuts initially boosted prices Friday. However, weekend selling quickly erased these gains as market dynamics shifted.
Binance remains the world’s largest cryptocurrency exchange by daily trading volume. Market participants closely monitor the platform for capital flow indicators and trading sentiment changes.
The current stablecoin deposit pattern suggests traders are preparing for increased market activity. Large inflows of dollar-pegged tokens typically signal readiness to purchase cryptocurrencies during price declines.
Current Bitcoin price trades above $111,000 after recovering from Tuesday’s lows near $109,000.
