Crypto markets reacted sharply after US President Donald Trump unveiled plans for a Crypto Strategic Reserve on March 2.
The proposal, which incorporates Bitcoin, Ethereum, XRP, Solana, and Cardano, triggered a wave of sell-offs as merchants sought to capitalize on value actions, in keeping with a CryptoQuant report shared with CryptoSlate.
In line with the report, Bitcoin inflows to exchanges noticed an unprecedented rise, leaping from a typical vary of 500 to 1,000 BTC per hour to a peak of 6,739 BTC the following day. Ethereum additionally witnessed a surge, with almost 300,000 ETH flowing into exchanges inside an hour.
XRP adopted the same development, with complete alternate inflows reaching 2 billion tokens in 2 days. At its peak, 193 million XRP entered exchanges per hour, primarily pushed by important whale transactions exceeding 1 million XRP.
Massive inflows into exchanges usually point out promoting strain, and the info means that crypto merchants have offloaded their holdings to lock in beneficial properties following the market uptick.
In the meantime, analysts at CryptoQuant additionally famous that regardless of the worth fluctuations, true spot demand stays weak.
They identified that Bitcoin’s development has slowed since its post-election rally in late 2024 and has now entered contraction territory for the primary time since September 2024.
In line with the analysts:
“Except Bitcoin demand begins to extend once more, sustaining a rally in crypto costs will stay difficult.”
