Bitcoin News Today: Investors Reallocate Amid Binance Inflows and Crypto Crossroads

Binance stablecoin inflows have surged to over $1.65 billion, a significant indicator of capital re-entering the cryptocurrency market after a period of volatility. The inflow, tracked by on-chain analytics firm CryptoQuant, suggests a potential shift in investor behavior, with traders likely preparing for a market rebound. This movement coincided with nearly $1 billion in Ether (ETH) withdrawals from Binance, indicating a strategic reallocation of assets within the exchange. This marks the second time this month that net stablecoin deposits on the exchange have exceeded $1.5 billion, a sign of renewed capital entering the spot trading market [1].

Stablecoin inflows into Binance have been closely monitored by market analysts due to their predictive nature in assessing broader market sentiment. The timing of the inflow is particularly notable as it occurred amid a wider market correction, with Bitcoin (BTC) and Ether experiencing a pullback from recent gains. On Tuesday, Bitcoin briefly dipped below $109,000, according to TradingView data, after a major sell-off over the weekend in which a large whale offloaded 24,000 BTC, triggering widespread liquidations of long positions. This event exacerbated the downward trend, with Bitcoin’s price rebounding to trade above $111,000 by the following day [1].

The recent market turbulence has also affected Bitcoin’s correlation with global M2 money supply, a key metric that has historically aligned with its price movements. Bitcoin’s deviation from this indicator marked the sharpest divergence in two years, according to Bitcoinsensus. The M2 correlation, which previously provided traders with a relatively reliable tool for short-term price prediction, has weakened in the short term, though longer-term correlations remain robust when measured against total global liquidity [1].

Meanwhile, the performance of U.S.-listed Bitcoin exchange-traded funds (ETFs) has mirrored the broader market’s instability. These funds have recorded nearly $1 billion in net outflows this month, with the week of August 19 seeing the largest outflow at $523 million. According to analysts, the continued outflows have contributed to Bitcoin’s underperformance this month, which has seen the price fall from a record high of $124,128 to just above $100,000. However, a potential reversal could be on the horizon. On Monday, spot Bitcoin ETFs ended a six-day outflow streak with $219 million in inflows, driven largely by Fidelity and BlackRock, which attracted $65.56 million and $63.38 million respectively [2].

Despite Bitcoin’s struggles, Ether ETFs have shown stronger demand, with $3.23 billion in inflows this month. This divergence in investor sentiment has led to a significant disparity in ETF flows between the two cryptocurrencies. According to CoinShares’ research head, James Butterfill, the outflows from Bitcoin ETFs represent the second-largest monthly outflow on record, trailing only the $3.56 billion in February. Butterfill attributed this trend to polarized investor views on U.S. monetary policy, particularly around the Federal Reserve’s stance on interest rates. However, the market responded positively to more dovish-than-expected comments from Fed Chair Jerome Powell, which sparked a brief inflow of $594 million in late-week trading [3].

Looking ahead, analysts suggest that Bitcoin’s ability to reach higher price levels, such as $150,000, will depend on a significant influx of capital into the market. Markus Thielen of 10x Research noted that Bitcoin would require an additional $173 billion in inflows between now and the end of the year to support such a price target. This would be double the combined allocations from Bitcoin ETFs and MicroStrategy since early January. While the immediate outlook remains uncertain, the recent inflows into Binance and the mixed performance of ETFs suggest that market participants are still actively positioning themselves for a potential rebound [3].

Source: [1] Binance Stablecoin Inflows Top $1.65B as Bitcoin Slumps (https://cointelegraph.com/news/binance-stablecoin-inflows-bitcoin-price) [2] Spot Bitcoin ETFs End Six-Day Outflow Streak with $219M Inflows, Fidelity and BlackRock Lead (https://cointelegraph.com/news/spot-bitcoin-etfs-break-outflow-streak-219m-fidelity-blackrock) [3] Bitcoin ETFs Need Almost $1B Inflows to Sidestep Second-Largest Monthly Outflow on Record (https://www.coindesk.com/markets/2025/08/26/bitcoin-etfs-need-to-pull-in-nearly-usd1b-this-week-to-avoid-second-biggest-monthly-outflow-on-record)