Altcoin Deposits Rise Sharply as CLARITY Act and Fed Decision Near This Week

Altcoin deposits to major crypto exchanges have surged ahead of two major U.S. policy events. Binance recorded the largest increase, while Coinbase and Bybit also saw higher transaction counts.

The activity comes as the U.S. Senate prepares to vote on advancing the CLARITY Act on Sept. 15. The Federal Reserve will announce its latest interest-rate decision a day later.

CryptoQuant analyst Darkfost said the increase could indicate greater potential selling pressure after the recent altcoin rally. However, current exchange activity has not reached unusually high levels.

Binance Altcoin Deposits Jump Nearly Fourfold

Binance recorded an average of about 31,800 altcoin deposit transactions over the past seven days. That compares with roughly 8,300 transactions in July, placing the latest level near four times the earlier reading. The jump makes Binance the main contributor to the increase in exchange inflows shown by CryptoQuant data.

Other large exchanges show the same direction. Coinbase altcoin deposits rose from around 2,200 to 4,700 transactions over the period. Bybit deposits climbed to roughly 2,700 transactions. The data track the number of deposit transactions rather than the value of tokens transferred, so they do not show how much capital traders may sell.

CLARITY Act and Fed Decision Keep Traders Alert

The increase arrives as U.S. lawmakers prepare for another key step on the CLARITY Act this week. The Senate is set to consider the crypto market structure bill after lawmakers revised parts of the text. The legislation has drawn close attention across the digital asset market as traders assess possible changes to U.S. crypto regulation.

The Federal Reserve will also announce its latest policy decision this week after its September meeting. Interest-rate expectations have already shaped crypto positioning through recent sessions. Traders typically watch Fed decisions for changes in liquidity conditions, Treasury yields and the U.S. dollar, all of which can influence demand for risk assets, including altcoins.

Rising Market Value Creates Room for Profit-Taking

Altcoin market value has expanded during the same period. TOTAL3, which tracks the crypto market excluding Bitcoin and Ether, has increased by more than $136 billion, according to the data shared by Darkfost. That rise gives short-term holders more room to take profits after the recent advance across parts of the altcoin market. The increase also places exchange activity against a backdrop of higher valuations rather than broad market weakness.

Higher exchange deposits can increase the amount of tokens available for trading, but deposits do not automatically translate into sales. Darkfost said the current inflow level has not reached an abnormal range.

Therefore, the data points to higher potential sell-side liquidity rather than confirmed large-scale selling across the market. Continued inflows would keep that pressure visible through this week’s policy events.

Bitcoin Dominance Adds Another Altcoin Signal

Bitcoin dominance is also approaching a closely watched technical area. A weekly chart shared by Ash Crypto shows dominance moving inside a descending triangle, with lower highs forming against support near 58%. The structure focuses on whether Bitcoin can maintain its share of the crypto market as altcoin activity increases. A weekly break under that area would mark a change in the current dominance structure.

A separate altcoin-dominance chart shows the market approaching a long-term descending trendline that stretches from the 2021 peak through later highs. The chart maps a possible breakout path into 2027, but that move has not occurred. For now, traders are watching whether Bitcoin dominance breaks below support while altcoin dominance clears its long-term trendline.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and exchange deposits do not necessarily indicate future selling. Readers should conduct their own research before making investment decisions.