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 worth actions, in accordance with a CryptoQuant report shared with CryptoSlate.
In accordance 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 subsequent day. Ethereum additionally witnessed a surge, with almost 300,000 ETH flowing into exchanges inside an hour.
XRP adopted the same development, with whole 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 typically point out promoting strain, and the information means that crypto merchants have offloaded their holdings to lock in good points following the market uptick.
In the meantime, analysts at CryptoQuant additionally famous that regardless of the value fluctuations, true spot demand stays weak.
They identified that Bitcoin’s progress has slowed since its post-election rally in late 2024 and has now entered contraction territory for the primary time since September 2024.
In accordance with the analysts:
“Except Bitcoin demand begins to extend once more, sustaining a rally in crypto costs will stay difficult.”
