Crypto markets are on edge awaiting a possible interest rate cut by the U.S. Federal Reserve, according to reports from CryptoQuant. On-chain data shows mixed investor sentiment, with Bitcoin and Ethereum exchange inflows dropping while stablecoin deposits rise. Altcoin inflows are increasing, signaling either profit-taking or a shift to riskier tokens.

Bitcoin exchange inflows hit a year-long low, with the 7-day moving average dropping to 25,000 BTC. Average deposit size per transaction has halved, indicating reduced selling pressure from larger holders. Analysts believe long-term investors are holding positions ahead of the Fed’s decision.

Ethereum is following Bitcoin’s subdued exchange activity, with ETH inflows at a two-month low. Deposit sizes are shrinking, reflecting muted sell-side activity. This trend, along with Bitcoin’s low inflows, suggests investors are hesitant to sell major holdings before a possible macro shift.

Stablecoins like Tether (USDT) are seeing a surge in deposits, reaching a year-to-date high of $379 million before easing. Daily average USDT deposits have more than doubled, indicating investors are preparing to deploy capital quickly if a positive Fed outcome triggers a rally.

Altcoins are defying the overall slowdown in inflows, with transaction deposits rising to 55,000 across various non-BTC and ETH tokens. Analysts suggest this could be due to investors rotating out of riskier assets or a growing interest in higher-beta tokens ahead of a potential macro catalyst.

Read more at Yahoo Finance.: Investors Brace for Fed Pivot as BTC & ETH Outflows Contrast Stablecoin Surge: CryptoQuant