Investors have started actively depositing stablecoins on centralized exchanges, which may indicate a potential bullish trend for Bitcoin and altcoins.
Increase in Stablecoin Exchange Inflows
According to data from Santiment, the total exchange net inflow of the top three stablecoins — Tether (USDT), USD Coin (USDC), and Dai (DAI) — reached $141.2 million in the past 24 hours. USDT alone saw a net inflow of $101.95 million, followed by USDC’s $34.87 million. DAI, the third-largest stablecoin by market cap, recorded an exchange net inflow of $4.24 million.
Crypto Market Reaction
The surge in stablecoin exchange net flows shows increased buyer optimism. Earlier, on August 22, a similar movement pushed Bitcoin’s price above the $64,000 mark, and the global cryptocurrency market capitalization reached a local high of $2.36 trillion. Currently, the global crypto market cap stands at $2.09 trillion, and the stablecoin market cap is at $170.9 billion. This category’s daily trading volume also surpassed the $60 billion mark following the bullish momentum.
Factors Influencing the Market
One of the main reasons behind the market-wide bullish momentum is the release of the U.S. Consumer Price Index report, which shows the country's inflation rate for August. Notably, the market could potentially go the opposite way if the inflation rate comes higher than the expected 2.6%. Bitcoin (BTC) gained 3.8% in the past 24 hours and is trading at $57,250. According to a crypto.news report, whales have started accumulating BTC and sending assets to their self-custodial wallets.
The increase in stablecoin inflows into centralized exchanges may indicate a potential bullish trend for Bitcoin and altcoins. However, the future market direction will depend on economic indicators such as the inflation rate in the U.S.
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