đđ„ The lifeline of the crypto market: Binance records $1.2 billion in inflows! đ°đ
The largest centralized cryptocurrency exchange Binance has seen a surge in inflows with a whopping $1.2 billion as investors seize the opportunity after a massive market plunge triggered by a yen carry trade unwind.
The rebound in Bitcoin (BTC) and the broader recovery in the cryptocurrency market have led to a surge in trading activity on centralized exchanges like Binance over the past 24 hours. Binance CEO Richard Teng revealed that the exchange has recorded its highest daily trading volume since the beginning of the year, according to data from DefiLlama.
In this uncertain macroeconomic climate and after yesterday's market cold snap, #Binance has recorded a net inflow of $1.2 billion in the last 24 hours, according to @DefiLlama's CEX transparency metrics. This represents one of the days with the largest net inflows of 2024, a sign of renewed investor interest...
â Richard Teng (@_RichardTeng) August 6, 2024
Bitcoin has recovered to $55,000 and is up more than 5% at present, following the overall market crash on August 5. The double-digit gains have propelled the total cryptocurrency market capitalization above $2 trillion.
Market leaders Ethereum (ETH) and Solana (SOL) also recovered their losses, offering profits to investors who bought the dip. Memecoins saw some of the biggest gains, with tokens like Brett (BRETT), Pepe (PEPE) and Bonk (BONK) seeing gains of over 10%.
Carry trade unwind rocks crypto markets, but doesn't mean recession
Despite speculation of a U.S. recession, the macroeconomic boost is coming mainly from Japanese yen carry trades valued at about $20 trillion, according to Goldman Sachs. A carry trade involves borrowing yen, converting it into currencies like the U.S. dollar, and then investing in higher-yielding assets.
JPMorgan said the outcome is only halfway through and more shocks could come.
M2 CEO Stefan Kimmel shares this analysis with traditional financial giants. âAlthough markets are recovering and the worst appears to be behind us, investors should prepare for continued volatility,â Kimmel said via email.
As crypto.news reports, Bitfinex analysts and on-chain data suggest that Bitcoin could revisit its recent lows around $48,900. A drop to these levels could trigger another market purge before prices resume a gradual trajectory.
#Binance #MarketDownturn #buythedip
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