Crypto exchanges recently saw an impressive surge in stablecoin net inflows, reaching nearly $1 billion in a single day— the highest amount since April 2023. This notable figure was recorded yesterday, according to on-chain data from market intelligence platform IntoTheBlock. The data reveals an initial drop in stablecoin net inflows at the beginning of Q4 2023, with October’s daily average staying below $300 million.
Stablecoin Netflows to Exchanges | IntoTheBlock
This decline marked the onset of the pre-bull run phase in the current market cycle, as Bitcoin (BTC) began recovering from $27,000. Following this, stablecoin inflows rebounded as the bull market started to form from Q4 2023 to Q1 2024. The metric remained relatively high until a decrease in May, with a rebound occurring four months ago. However, recent spikes have been particularly significant. On August 6, exchanges recorded a peak of $978 million in stablecoin net inflows, reflecting a significant market rebound. Yesterday, this number spiked again to $957 million, the highest in sixteen months. Currently, the figure has sharply fallen to $99 million, and it remains uncertain if a recovery will follow in the coming days.
Why This Matters
These inflow spikes are often interpreted as bullish indicators, as they signal increased purchasing power among investors. Typically, investors deposit more stablecoins into exchanges when preparing to enter the market. For instance, after a similar spike in April, the crypto market experienced a notable rebound. Bitcoin first climbed above $31,000 before a correction and later reached a peak above $73,000 in March 2024.
Given the recent inflow spikes, investors might be preparing to re-enter the market, especially as these trends emerge during a market downtrend. If Bitcoin maintains its position above $59,000, the influx of new capital could drive a recovery past $60,000. CryptoQuant CEO Ki Young Ju recently noted that Bitcoin’s chance of hitting a new all-time high depends on its ability to hold the $45,000 support level.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed are those of the author and do not reflect The Crypto Basic’s opinion. Readers should conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses.