Users of Binance deposited $1.65 billion in stablecoins, signaling renewed demand for spot cryptocurrencies. Ether withdrawals from Binance reached nearly $1 billion, marking the second time this month that net stablecoin deposits exceeded $1.5 billion. Binance processed over $29.5 billion in trades on Tuesday, highlighting its significance in the crypto market.

Stablecoins are the main funding source for crypto traders, indicating readiness to purchase digital assets. The recent influx of stablecoins onto exchanges coincided with a market slump as Bitcoin and Ether retraced Friday’s gains. Bitcoin briefly dipped below $109,000 on Tuesday following a major sell-off over the weekend.

Bitcoin’s price discrepancy from the global M2 money supply marked the largest deviation in two years. Despite its historical correlation with M2, Real Vision founder Raoul Pal noted that a stronger correlation exists when measured against total global liquidity. Bitcoin’s volatility has also been influenced by significant outflows from US spot ETFs.

Bitcoin ETFs experienced over $1 billion in outflows last week but saw their first day of net inflows in six sessions on Monday. The movement of stablecoins onto exchanges and the volatility in Bitcoin’s price are key indicators of market sentiment and potential shifts in the crypto landscape.

Read more at Cointelegraph: Binance Stablecoin Inflows Top $1.65B as Bitcoin Slumps