Ahead of US CPI announcement, large inflow of Bitcoin into Binance... Volatility will increase

Binance Bitcoin Inflow Surging Ahead Of CPI Announcement (Source: CryptoQuant)

As The United States March Consumer Price Index (CPI) Announcement Approaches, Bitcoin Is Moving To Binance On A Large Scale, Prompting Warnings Of Potential Drastic Volatility In The Cryptocurrency Market.

CryptoQuant's Researcher Maarten Regterschot Revealed In An Analysis Released On The 10th That The Amount Of Bitcoin That Flowed Into Binance Over The Past 12 Days Totaled 590,874, Which Is 22,106 More Than The Previous Average. He Interpreted This Movement As Reflecting The Market's Tension, Stating, "Investors, Conscious Of Macroeconomic Uncertainty Ahead Of The CPI Announcement, Are Moving Assets To The Exchange."

The Us Department Of Labor Is Scheduled To Announce The March CPI Figures On This Day, Which Serves As A Key Reference For The Federal Reserve's (Fed) Interest Rate Policy Decision. The Asset Markets, Including Cryptocurrencies, Tend To Fluctuate Greatly Immediately After The CPI Announcement, Leading Investors To Adjust Their Positions Ahead Of It.

Particularly In March, President Trump Announced A Temporary 90-Day Tariff Suspension On All Countries Excluding China, While Imposing A 125% High Tariff On China, Escalating Trade Tensions. Analyses Are Emerging That These Measures Have Contributed To Increasing Market Anxiety.

However, There Is Also A Contrary Opinion That The Inflow Of Bitcoin To Binance May Not Necessarily Lead To Selling Pressure. Pav Hundal, A Senior Researcher At The Australian Cryptocurrency Exchange Swyftx, Explained, “While The Amount Entering The Exchange Generally Means Selling, In This Case, It Is Possible That Binance Is Preparing The Quantity On Its Own In Anticipation Of Increased Demand.” He Further Added, “It Might Be A Technical Preparation To Respond To Market Demand, And It Is Too Early To Interpret It Simply As A Signal For A Decline.”

The Cryptocurrency Market Is Likely To Experience High Volatility For Several Days As The CPI Figure And The Trump Administration's Trade Policy Stance Coincide. Some Analysts Believe That If The Inflation Rate Comes Out Lower Than Expected, The Market May Return To An Upward Trend.