Advertisement
AD

Main navigation

Advertisement
Advertisement

Binance and Coinbase May Fuel Next Phase of Market Rally, Here's Why

Advertisement
Thu, 7/11/2024 - 16:23
Binance and Coinbase May Fuel Next Phase of Market Rally, Here's Why
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Activities on the cryptocurrency market suggest a looming buying spree by investors. This increased activity recorded an uptick based on global economic activities over the past week. CryptoQuant, a leading on-chain analytics platform, has spotlighted increased activities on Binance and Coinbase.

Advertisement

Historical patterns hint at bullish potential

In an X post, CryptoQuant reported a massive inflow of ERC-20 stablecoins valued at $9.3 billion into several cryptocurrency exchanges. Notably, this is the second-largest inflow of these stablecoins since their inception.

Related

Binance, the largest crypto exchange by trading volume, received approximately $4.3 billion. Coinbase, the largest U.S. crypto exchange, registered $3.4 billion worth of ERC-20 stablecoin inflows. The two major exchanges received a cumulative $7.7 billion worth of inflows. The balance of $1.6 billion was deposited in several other smaller exchanges in the crypto space.

Analysts say the influx suggests that investors are positioning themselves to acquire other assets massively. It could also signal a potential shift toward a bullish market rally.

Interestingly, historical precedence showed similar inflows between September 2020 and February 2021 before the market rallied. Therefore, market trend observers are betting that if similar conditions occur, the market could likely witness a buying spree. Such increased buying may trigger a price surge across the crypto market.

Open Interest supports bullish outlook

Overall, CryptoQuant and other analysts project that current sentiment could influence many investors to move more capital into crypto assets. This may serve as a routine investment to profit from an anticipated bullish run or as a hedge against inflation.

card

According to a recent report, Binance's open interest in crypto derivatives hit an all-time high of $8.3 billion. CryptoQuant analysts consider this significant and an indication of a possible future outlook. The open interest coinciding with the increased price of Bitcoin suggests more investors are buying.

The coming days will reveal if positive sentiment will sustain a crypto market rally.

Related articles

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD