Bitcoin News Today: Stablecoin Surge on Binance Hints at Market Turnaround Amid Bitcoin Doldrums

Users of the Binance cryptocurrency exchange deposited over $1.65 billion in stablecoins on Tuesday, a significant inflow often viewed as a precursor to renewed demand for spot cryptocurrencies following recent market declines. This development was accompanied by nearly $1 billion in Ether (ETH) withdrawals from the platform, according to onchain analytics firm CryptoQuant. It marked the second instance this month that net stablecoin deposits exceeded $1.5 billion, signaling a potential re-entry of capital into the spot market, according to CryptoQuant’s Amr Taha.

Stablecoin inflows into Binance have surged, highlighting the platform’s role as a bellwether for broader market trends. Binance, the world’s largest cryptocurrency exchange by trading volume, processed over $29.5 billion in trades on Tuesday—nearly six times the volume of its nearest competitor, Bybit, as reported by CoinMarketCap. Stablecoins are commonly used by traders to fund positions on exchanges, and their movement typically indicates readiness to purchase digital assets. This timing is particularly noteworthy given the ongoing slump in crypto markets, with Bitcoin (BTC) and Ether both retreating from earlier gains amid uncertainty around U.S. monetary policy.

The broader market context includes recent volatility, sparked in part by a large Bitcoin whale offloading 24,000 BTC over the weekend, which led to a wave of long liquidations and downward pressure on the price. Bitcoin briefly dipped below $109,000 on Tuesday before recovering to trade above $111,000. The decline also extended the deviation of Bitcoin’s price from its typical alignment with the global M2 money supply—a metric it has historically tracked with a two- to three-month lag. This divergence, the sharpest in two years, has raised questions about the reliability of using M2 as a predictive indicator in the short term.

Meanwhile, U.S. spot Bitcoin ETFs have faced a challenging month, with nearly $1 billion in outflows recorded. These outflows, the second-largest since the launch of the ETFs in January 2024, are believed to have contributed to Bitcoin’s weaker price performance. Analysts suggest that a reversal in this trend—specifically, an inflow of nearly $1 billion into these funds—would be necessary to prevent the ETFs from recording their second-worst monthly performance on record. In contrast, ether ETFs have maintained strong inflows, accumulating $3.23 billion this month and extending a positive trend that began in April.

Investor sentiment has remained divided, with pessimism over U.S. monetary policy driving outflows early in the week. However, this sentiment shifted following Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium, which was interpreted as more dovish than expected, sparking a partial recovery in inflows. The shift was more pronounced in ether-related funds, where a mid-week rebound led to $440 million in outflows. Bitcoin ETPs, on the other hand, experienced significantly larger outflows, exceeding $1 billion. Analysts note that the ongoing divergence in investor behavior—Bitcoin ETFs seeing outflows while ether ETFs attract inflows—highlights a shift in market dynamics and potentially stronger macroeconomic support for Ethereum.

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 ... (https://cointelegraph.com/news/spot-bitcoin-etfs-break-outflow-streak-219m-fidelity-blackrock) [3] Bitcoin ETFs Need Almost $1B Inflows to Sidestep Second- ... (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) [4] Crypto ETPs post $1.4B losses amid recent Bitcoin, Ether ... (https://cointelegraph.com/news/crypto-funds-1-4-billion-outflows-bitcoin-ethereum)