Investors Prepare for Potential Fed Pivot as Crypto Markets React
The crypto markets are abuzz with speculation about a potential interest rate reduction by the US Federal Reserve, according to reports by Cryptoquant. As investors await the Fed’s decision, on-chain data reveals a mixed picture, with liquidity signals diverging across key assets. Bitcoin and Ethereum exchange inflows have declined to multi-month lows, while stablecoin deposits have surged, indicating that retailers are preparing for a potential guideline pivot.
The markets are waiting for FED cuts.
BTC inflows reached 25,000, a 1-year low with AVG. Halved deposit size since July.
USDT deposits rise while the Altcoin inflows -signal rotation. pic.twitter.com/dhdlfxeywv
Cryptoquant’s on-chain data this week draws a mixed image of the investigation, whereby liquidity signals deviate over important assets. While Bitcoin and Ethereum replacement inflows slide to multiple deep stalls over several months, stable co-deposits rise, which indicates that retailers prepare dry powder for the possibility of a guideline pivot.
Bitcoin Inflows Decline
The Bitcoin exchange inflows have dropped to the lowest level for more than a year. The 7-day moving average is now 25,000 BTC, of 51,000 BTC in July. At the same time, the average deposit size per transaction of 1.14 BTC in mid-July halves to only 0.57 BTC in September. Kryptoquant-analysts say that this indicates a reduced sales pressure of larger owners, with long-term investors showing little wish to leave the positions before the decision of the Fed.
Ethereum Tracks Similar Trend
Ethereum reflects the damped exchange activity of Bitcoin. The ETH inflows fell to a two-month low, with the 7-day average falling back to 783,000 ETH compared to 1.8 million ETH, only in mid-August. The deposit sizes also shrink, the average transaction from 40 to 45 ETH drops to around 30 ETH on previous tips. Once, the trend reflects the trend with the side of the sale, reflects the low tributaries from Bitcoin and increases the view that investors are reluctant to liquidate important participations before a possible macro herself.
Stablecoin Deposits Surge
In contrast, stable coins show an increase in inflows, especially the Tether (USDT). On August 31, the net deposits reached $379 million, the highest level from year to year before they recently loosened to around $200 million. Nevertheless, the daily average number of USDT has more than doubled, from USD 63,000 in July until today. This sharp increase implies that investors actively move the liquidity on the stock exchanges and prepare to use capital quickly if a favorable FED result solves a rally.
Altcoin Activity Picks Up
Altcoins breed the wider slow slowdown of the inflows. Transaction deposits in a basket with non-BTC and ETH tokens rose to 55,000 (7-day), compared to the flat area of 20,000 to 30,000 in May and June. Cryptoquant analysts note that this increase could reflect an increased sales pressure if investors are turned out of a potential macrocatalyst of risky assets or, conversely, growing speculative interest in tokens with higher beta.
Outlook
The upcoming announcement of the Fed is ready to test these liquidity patterns. Reduced BTC and ETH inflows indicate a conviction among long-terminers, while higher stable co-deposits highlight a market that wants to react quickly. Whether the shift prefers the blue-chip crypto capacity or speculative old coins depends heavily on the next step of the Fed. For more information, visit https://cryptonews.com/news/investors-brace-for-fed-pivot-as-btc-eth-outflows-contrast-stablecoin-surge-cryptoquant/
