Stablecoin

Coin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/understanding-market-trends-through-stablecoin-flows" rel="noopener noreferrer nofollow">Understanding Market Trends Through Stablecoin Flows</a><br></p>
<p style="text-align: justify">Stablecoins are crucial in deciphering the cryptocurrency market’s behavior. A significant increase in stablecoin deposits to exchanges was noted on January 26, suggesting a peak in inflow volume, as reported by IntoTheBlock.</p>
<h2 id="increase-in-stablecoin-volume">Increase in Stablecoin Volume</h2>
<p style="text-align: justify">CryptoQuant’s analysis revealed a higher frequency of daily volume spikes in January compared to previous months. Notably, January 2 saw one of the highest monthly inflows, with over $478 million entering exchanges. Despite this, a shift towards greater outflows became apparent later in the month.</p>
<p style="text-align: justify">The outflows peaked on January 30, with $412 million leaving exchanges, marking it as the second-largest daily withdrawal of the month. This pattern of outflows could signal a significant shift in market sentiment. The overall 24-hour trading volume, as per 21milyon.com, stood at roughly $49 billion.</p>
<p style="text-align: justify">Tether (<a href="https://en.bitcoinhaber.net/the-evolution-of-tether-a-story-of-innovation-resilience-and-determination" rel="noopener noreferrer nofollow">USDT</a>) and USD Coin (USDC) dominated the trading volume, contributing to about 90% of it, with USDT alone accounting for over $42 billion. CryptoQuant’s data also highlighted a substantial USDT inflow on January 26, amounting to over $373 million.</p>
<p style="text-align: justify">Despite the influx, outflows remained prevalent, suggesting a cautious approach by investors, possibly in anticipation of market volatility. The movement of stablecoins into exchanges could imply a strategic move by traders to secure their funds or prepare for future investments in the volatile crypto market.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/understanding-market-trends-through-stablecoin-flows" rel="noopener noreferrer nofollow">Understanding Market Trends Through Stablecoin Flows</a></h5>

Understanding Market Trends Through Stablecoin Flows

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