Stablecoin deposits on Binance surpassed $1.65 billion, creating opportunities for increased demand for spot assets. This trend is observed amidst market instability and recent sell-offs by large holders.
Growth of Stablecoin Deposits on Binance
According to CryptoQuant, the volume of stablecoin deposits on Binance has significantly increased, reaching over $1.65 billion. This growth follows recent Ethereum liquidations totaling nearly $1 billion. This marks the second instance in less than a month where fiat-pegged deposits exceed $1.5 billion.
Crypto Market and Bitcoin Decline
The recent movements in stablecoins coincided with an overall downward trend in the cryptocurrency market. Bitcoin, for instance, traded relatively flat before falling below $111,000 over the weekend, a consequence of whale liquidations. Ethereum has also seen a decrease despite optimism surrounding possible interest rate cuts by the Fed.
Changes in Bitcoin and Global Capital Correlation
Bitcoin’s recent price changes are significant, marking a deviation from its usual correlation with the global M2 money supply. Previously, Bitcoin and global M2 exhibited a strong correlation, but recent shifts indicate a new trend towards resilience against external economic factors.
The increasing volume of stablecoin deposits on Binance may indicate a resurgence of interest in spot purchases, despite recent market downturns. Investors and traders continue to monitor the situation as the market remains under pressure.
