Altcoin inflows on Binance quadruple ahead of Fed decision

The number of altcoin transactions heading to exchanges is rising sharply, with Binance as a notable outlier. While in July an average of 8,300 transactions per seven days came in, the exchange now counts 31,800 incoming altcoin transactions, a fourfold increase. The rise coincides with two major events this week: a Senate vote on the Clarity Act and the Federal Reserve’s interest rate decision, with the chance of a rate hike currently estimated at 92%.

In brief:

• Binance sees the number of altcoin transactions rise from 8,300 to 31,800 on a seven-day cumulative basis
• The Fed meets on Wednesday 16 September; the market expects a 92% chance of a rate hike
• The total altcoin market value (Total 3) grew by more than $136 billion, which could trigger profit-taking

Binance attracts most altcoin inflows

Binance is not the only exchange showing an increase. On Coinbase, the number of incoming altcoin transactions increased from 2,200 to 4,700, and on Bybit that number rose to 2,700. The increase is broadly visible, but Binance dominates the picture by far.

Analyst Darkfost points out that the increase in inflow transactions may be related to selling pressure. That selling pressure is not yet extremely high, but he believes it is worth keeping an eye on. It is also notable that Bitcoin rose by more than 30% in a few days recently. Bitcoin is currently trading around $77K, which corresponds to a decline of 0.3% in the past 24 hours.

Clarity Act and Fed dominate the agenda

The market is watching two central events this week. On Tuesday, a procedural vote takes place in the US Senate on the revised Clarity Act, which Republicans recently amended to gather enough support. The chance that the bill passes the Senate vote is currently estimated at 32%.

The FOMC meets on Wednesday. The expectation is that the Fed will raise rates, with a 92% chance priced in by the market. A rate hike would be the first in quite some time and could put pressure on crypto markets.

Profit-taking after strong altcoin rally

The total market value of altcoins, measured via the so-called Total 3, grew by more than $136 billion in the period described. Darkfost states that this growth makes profit-taking attractive, especially in a market that is still uncertain about direction.

The increased inflow towards exchanges fits that picture. When investors send altcoins to an exchange, that is often a precursor to selling. Whether that selling pressure actually increases will become clearer this week, depending on the outcome of both the Fed meeting and the vote on the Clarity Act.