Users of the Binance cryptocurrency exchange has deposited $ 1.65 billion in stablescoins, an important influx often considered as a precursor of a renewed demand for cryptocurrencies following the recent market sale.
The deposit coincided with nearly a billion dollars of Ether (ETH) withdrawal from Binance, according to the supplier of Onchain Analytics Cryptochant. He also marked the second time this month that the Stutch Stables of the Stables of the Stock Exchange exceeded $ 1.5 billion, “stressing a renewed wave of capital entering the cash market,” wrote Amr Taha of Cryp October.
Binance, the greatest exchange of cryptocurrency in the world in volume of trading, is closely monitored for wider signs of market changes. On Tuesday, he treated more than $ 29.5 billion in trades, almost six times the volume managed by the second appeal, according to CoinmarketCap.
Stablecoins are the main source of financing for cryptocurrency merchants, and their movement on exchanges generally signals the preparation for the purchase of digital assets.
The timing was remarkable on Tuesday, when cryptographic markets extended their collapse at the start of the week: Bitcoin (BTC) and Ether made the gains on Friday, which had been fed by the comments of the president of the Federal Reserve, Jerome Powell, signaling the preparation for the preparation of interest rates in September.
The recent turbulence of the market came from a wave of long Bitcoin liquidations after a major sale during the weekend, when a whale discharged 24,000 BTC on Sunday, arousing high sales pressure.
The BTC price briefly dropped below $ 109,000 on Tuesday, according to tradingView data.
In relation: Bitcoin late long is destroyed as BTC price calls of less than $ 110,000 become stronger
Greater divergence Bitcoin-M2 in two years
The Bitcoin crisis at the start of the week stood out when it marked the clearest gap in two years compared to its generally close alignment with the global money supply of M2- a key measure of wide money circulating in the economy.
From the pandemic, Bitcoin has shown a strong correlation with the world’s M2, generally with a two to three months’ gap, offering traders a relatively reliable guide to short -term price trends.
That said, like the founder of Real Vision, Raoul Pal – one of the first to highlight the relationship – noted, the longer term correlation is stronger when it is measured in relation to total overall liquidity, rather than M2 alone.
Another engine of recent Bitcoin volatility has been the regular flow of American stock market (ETF) funds. According to Coinshares, the Bitcoin ETF recorded more than a billion dollars in outings last week.
The silver lining came on Monday, when the products saw their first day of net entries in six sessions.
Review: Stablecoins in Japan and China, India reflects on the cryptography of changes: Asia Express