Investors Brace for Fed Pivot as BTC & ETH Outflows Contrast Stablecoin Surge: CryptoQuant

Crypto markets are closely watching the U.S. Federal Reserve as speculation grows about a potential interest rate cut, reports CryptoQuant.

Markets await Fed cuts.

BTC inflows hit 25K, a 1-year low, with avg. deposit size halved since July.

USDT deposits climb while altcoin inflows signal rotation. pic.twitter.com/dhDLFXeYwV

On-chain data from CryptoQuant this week paints a mixed picture of investor sentiment, with liquidity signs diverging across major assets.

While Bitcoin and Ethereum exchange inflows are sliding to multi-month lows, stablecoin deposits are climbing, suggesting traders are preparing dry powder for the possibility of a policy shift. Meanwhile, altcoin inflows are rising, hinting at either profit-taking or rotation into higher-risk tokens, reports CryptoQuant.

Bitcoin exchange inflows have dropped to their lowest levels in more than a year. The 7-day moving average now stands at 25,000 BTC, down from 51,000 BTC recorded in July.

At the same time, the average deposit size per transaction has halved, falling from 1.14 BTC in mid-July to just 0.57 BTC in September. CryptoQuant analysts say this indicates reduced selling pressure from larger holders, with long-term investors showing little desire to exit positions ahead of the Fed’s decision.

Ethereum is mirroring Bitcoin’s subdued exchange activity. ETH inflows have fallen to a two-month low, with the 7-day average declining to 783,000 ETH, compared with 1.8 million ETH as recently as mid-August.

Deposit sizes are also shrinking, with the average transaction dropping from 40–45 ETH at earlier peaks to around 30 ETH today. Taken together, the trend reflects muted sell-side activity, echoing Bitcoin’s low inflows and reinforcing the view that investors are reluctant to liquidate major holdings before a possible macro shift.

In contrast, stablecoins are showing a surge of inflows, particularly Tether (USDT). Net deposits reached $379 million on August 31, the highest level year-to-date, before easing to around $200 million more recently.

Even so, the daily average USDT deposit has more than doubled, from $63,000 in July to $130,000 today. This sharp uptick implies investors actively move liquidity onto exchanges, preparing to deploy capital quickly if a favorable Fed outcome sparks a rally.

Altcoins are bucking the broader slowdown in inflows. Transaction deposits across a basket of non-BTC and ETH tokens have risen to 55,000 (7-day total), compared with the flat 20,000–30,000 range seen in May and June.

CryptoQuant analysts note that this increase could reflect heightened selling pressure as investors rotate out of riskier assets, or, conversely, growing speculative interest in higher-beta tokens ahead of a potential macro catalyst.

The Fed’s upcoming announcement is set to test these liquidity patterns. Reduced BTC and ETH inflows suggest conviction among long-term holders, while higher stablecoin deposits show a market eager to react quickly. Whether the shift favors blue-chip crypto assets or speculative altcoins will depend heavily on the Fed’s next move.

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