Binance Stablecoin Outflow On Steady Rise — What This Means For The Market

The aftermath of the October 10 flash crash continues to weigh on the cryptocurrency market, with major digital assets still showing signs of ￰0￱ data from an on-chain analysis sheds light on one of the underlying factors behind the market ￰1￱ Reading: Binance Stablecoin Supply Surges To Record $42B: Liquidity Flows Back Into Markets Stablecoin Netflow In Downtrend — Analyst In a recent QuickTake post on CryptoQuant, a market analyst with the username CryptoOnchain reported an interesting change in stablecoin activity on the Binance ￰2￱ analysis is based on readings from the ‘Total Stablecoin Netflow On Binance (Last 60 Days) & 7-Day MA ‘ and shows potentially compelling implications for the general ￰3￱ to CryptoOnchain, the 7-day moving average of the combined stablecoin netflow (purple line) has decisively dipped beneath the ‘zero’ mark, marking a shift from sustained inflows to accelerating ￰4￱ Onchain further explained that the downward trend seen in the stablecoin netflow chart has been reinforced by significant spikes in outflows occurring over the past two ￰5￱ neither of the two major categories excluded, this ‘capital flight’ involves stablecoins both on the TRC20 network (one of which is USDT), and those operating under the ERC20 ￰6￱ Reading: Bitcoin Liquidity Hits Seven-Year Low As Accumulators Stack 373,700 BTC In A Month Market Outlook In The Short Term Generally, an increase in stablecoin netflow to exchange platforms reflects an increasing demand for cryptocurrencies, as stablecoins are mostly exchanged for other online assets.

Therefore, the decrease in stablecoin netflow presently seen signals reduced interest in other risky assets and a growing inclination among market participants to exclude themselves from participating in a risky market ￰7￱ pattern of capital exiting exchanges, especially after a major price correction, typically points to what the analyst termed “a weakening ‘buy the dip’ appetite.” If history is anything to go by, this could be an early sign that the crypto market is about to see an even more intense amount of bearish pressure, especially in the short ￰8￱ of this writing, Bitcoin, the world’s leading cryptocurrency, stands at a valuation of approximately $111,400, showing a slight price growth of 0.54% over the past ￰9￱ showing a similarly minute appreciation over the past 24 hours is Ethereum, which is worth about $3,936.

Meanwhile, the total stablecoin market cap remains valued at $319 billion following a 0.14% gain in the past ￰10￱ image from iStock, chart from Tradingview