Binance Records $1.65 Billion Stablecoin Inflow as Traders Position for Market Recovery
Users deposited $1.65 billion in stablecoins on Binance cryptocurrency exchange during Tuesday's trading session. Cointelegraph reported the massive inflow coincided with nearly $1 billion in Ethereum withdrawals from the platform.
The deposit total represents the second time this month that net stablecoin deposits on Binance exceeded $1.5 billion. CryptoQuant analyst Amr Taha described the flow as "a renewed wave of capital entering the spot market." Binance processed over $29.5 billion in trades on Tuesday, nearly six times runner-up Bybit's volume.
Bitcoin briefly dropped below $109,000 during Tuesday's session according to TradingView data. The price decline followed weekend selling pressure when a whale offloaded 24,000 BTC on Sunday. Markets extended their early-week correction as both Bitcoin and Ethereum gave back gains from Federal Reserve Chair Jerome Powell's dovish comments.
Why Large Stablecoin Inflows Matter
Stablecoin movements onto exchanges typically signal trader readiness to purchase digital assets. The timing of Binance's $1.65 billion inflow coincided with Bitcoin's 10% correction from recent highs. Professional traders often use stablecoins as their primary funding source for cryptocurrency purchases.
Liberty Street Economics research shows stablecoin demand grows alongside broader crypto asset demand. The Federal Reserve Bank of New York found stablecoin market capitalization reached $232 billion by March 2025. Total stablecoin flows increased dramatically during positive Bitcoin price shocks between 2021 and 2025.
The massive inflow comes after Bitcoin ETFs recorded over $1 billion in outflows last week. However, Monday saw the first day of net ETF inflows in six sessions. We reported in February that Strategy raised $2 billion through convertible notes for additional Bitcoin purchases, demonstrating continued institutional appetite for crypto exposure.
Broader Market Implications
The stablecoin surge reflects shifting dynamics in cryptocurrency trading infrastructure. McKinsey analysis shows stablecoin transaction volume exceeded $27 trillion per year in 2024. This volume surpassed combined Visa and Mastercard transactions by over 7.68 times.
Traditional financial institutions are increasingly entering the stablecoin market to compete with crypto-native providers. Major banks including JPMorgan, Bank of America and Citigroup are exploring unified digital dollar offerings. PayPal, Standard Chartered and other established finance companies have already launched stablecoin products.
Bitcoin's recent price action marked the sharpest two-year deviation from global M2 money supply correlation. The cryptocurrency typically shows strong alignment with broad money circulation measures. However, increasing institutional adoption through ETFs and corporate treasury strategies may be altering these traditional relationships as digital assets mature into mainstream financial products.
