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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.
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.
Alex DovbnyaBinance, 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.
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.
Gamza Khanzadaev
Dan Burgin
Vladislav Sopov