Stablecoin Boom on Binance Signals Bitcoin’s Recovery on the Horizon

Binance, the world’s largest cryptocurrency exchange by trading volume, recorded major stablecoin inflows in August 2025, with CryptoQuant reporting $1.82 billion in net deposits earlier this month. 

With a $1.65 billion inflow on Aug. 26, according to CryptoQuant, experts see such inflows as an indicator that traders are preparing for a market turn, as the market has been volatile lately.

Stablecoins, which are a primary source of funds for crypto traders, generally indicate preparation to purchase assets such as Bitcoin (BTC) when inflows increase. CryptoQuant analyst Amr Taha noted that such inflows represent “a renewed wave of capital entering the spot market,” a pattern often preceding price recovery. 

Bitcoin has been unstable, trading at $90,511 in March 2025 and around $115,000 in early August. It presently trades at $110,755 as of Aug. 27, 2025. 

Bitcoin Price Chart

Bitcoin Price Chart (Source: CoinMarketCap)

A whale’s sale of 19,663 BTC, valued at approximately $3.2 billion, contributed to market volatility, with high levels of liquidations reported.

Binance’s Dominance Grows Following ETH Withdrawals and Volatility

Binance also saw substantial Ethereum (ETH) withdrawals in August 2025, with on-chain data suggesting investors are transferring assets to private wallets, perhaps for long-term holding. 

A whale transaction involving 455,672 ETH, including 279,000 ETH staked, is in line with this trend. 

Binance’s market dominance remains clear, with trading volumes far exceeding competitors like Bybit

Top 5 Crypto Exchanges

Top 5 Crypto Exchanges (Source: CoinMarketCap)

Meanwhile, U.S. spot Bitcoin ETFs saw $1.17 billion in outflows last week, with inflows resuming on Aug. 25, a sign of shifting investor sentiment. 

Bitcoin’s price showed a sharp divergence from the global M2 money supply that reached a two-year high, but Real Vision analyst Raoul Pal argues that its long-term correlation with global liquidity suggests a more bullish momentum, despite short-term complexities.

Macro Challenges and Stablecoin Flows Shape Bitcoin’s Future

The rise in stablecoin inflows to Binance shows a possible Bitcoin price bounce back, and analysts like James Butterfill at CoinShares are predicting the potential to reach $150,000 in 2025.

While a break above $120,000 could serve as a trigger for $140,000 price levels, historical data shows stablecoin inflows often precede volatility and bullish price momentum. 

Bitcoin, down slightly from an early August high near $115,000, faces volatility challenges due to macroeconomic factors, including inflation and tariff concerns in the United States. 

The declining exchange balances and renewed ETF inflows show a market is set for a new trajectory.

Author

  • Toheeb Kolade

    Toheeb is an insightful blockchain reporter with deep knowledge of cryptocurrencies. With years of experience in financial journalism, Toheeb covers the latest developments in blockchain technology, cryptocurrency trends, decentralized finance (DeFi), and regulatory updates. Known for breaking news and in-depth analysis, Toheeb brings new angles on how blockchain is transforming industries and changing the global economy. From uncovering market movements to providing expert commentary on new technologies, Toheeb is dedicated to keeping readers informed about the developments in blockchain-related topics.

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Toheeb Kolade

Toheeb is an insightful blockchain reporter with deep knowledge of cryptocurrencies. With years of experience in financial journalism, Toheeb covers the latest developments in blockchain technology, cryptocurrency trends, decentralized finance (DeFi), and regulatory updates. Known for breaking news and in-depth analysis, Toheeb brings new angles on how blockchain is transforming industries and changing the global economy. From uncovering market movements to providing expert commentary on new technologies, Toheeb is dedicated to keeping readers informed about the developments in blockchain-related topics.

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