Binance, the largest centralized exchange in the cryptocurrency sector, witnessed $1.2 billion in net inflows as investors leveraged a significant market drop triggered by the unwinding of the yen carry trade.

Bitcoin surged, and the broader cryptocurrency market experienced a rebound, leading to increased trading activity on platforms like Binance within the last 24 hours. According to Binance CEO Richard Teng, citing DefiLlama data, the crypto exchange recorded its highest single-day trading volume since the start of the year.

Amid the current macroeconomic environment and the recent market downturn, Binance reported a net inflow of $1.2 billion over the past 24 hours, based on CEX Transparency metrics from DefiLlama. This day marked one of the highest net inflow days of 2024, reflecting strong investor activity.

Bitcoin recovered to $55,000, up over 5% at press time, following a global market downturn on August 5. Double-digit gains lifted the total crypto market cap above $2 trillion once again.

Leading cryptocurrencies such as Ethereum and Solana also retraced their losses, offering profits for “buy-the-dip” investors. Additionally, memecoins like Brett, Pepe, and Bonk saw significant increases, posting over 10% gains.

Despite speculations of a U.S. recession, the recent market downturn was primarily driven by the unwinding of approximately $20 trillion in Japanese yen-carry trades, according to Goldman Sachs. A carry trade involves borrowing yen, converting it into other currencies such as the U.S. dollar, and investing in higher yield-bearing assets.

JPMorgan estimated that the unwinding process is only halfway through, suggesting more market volatility could be on the horizon. M2 CEO Stefan Kimmel echoed this sentiment, advising investors to brace for continued market fluctuations.

As noted by Bitfinex analysts and on-chain data, Bitcoin might revisit its recent lows around $48,900. A drop to these levels could trigger another market flush-out before prices start to rise progressively again.

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