All roads lead to one direction even in the crypto market this week: the Federal Open Market Committee (FOMC) meet. It appears that a majority of crypto traders are preparing for the meeting so they could cash in on the price movement. Clearly, the market is preparing for volatile action, but it’s uncertain as to how long it would last after the FOMC decision.
Huge Stablecoin Inflow In Recent Times
Proving that crypto traders are anticipating volatility, there is huge stablecoin inflow into exchanges in last few days. This week, there is huge spike in stablecoin transaction inflow into exchanges, more so with Tether. Analysts at CryptoQuant indicate that the strong inflow is a clear sign of market’s preparation for the week’s big news. CryptoQuant analyst elcryptotavo who does on-chain data, said,
“In preparation for the news this week, there is a big inflow of stables to exchanges, especially USDT.”
On July 26, an abnormal spike is seen in exchange depositing transactions related to the Tether stabecoin. To a lesser extent, the same is witnessed with regard to other stablecoin inflow transactions to exchanges.
Stablecoin Regulation In Major Economies
Lawmakers in the U.S. are in the process of agreeing on imposing tougher oversight of stablecoins. If all goes as planned, it is likely that the bill could move forward in Congress by September. The move for a stablecoin bill was spurred by demands for strict regulation in addition to existing rules. Calls for increased regulatory action on stablecoins intensified following the recent collapse of Terra’s UST.
Also, UK’s authorities are planning to use stablecoins for making payments under the Financial Services and Markets bill. The country’s lawmakers believe crypto presents huge potential in transforming the financial landscape of the country as a leader in digital finance. The country also aims to control crypto scams with the legilation