Altcoin deposits to major cryptocurrency exchanges have risen sharply ahead of two pivotal U.S. policy events this week. Binance recorded the largest increase in deposit activity, while Coinbase and Bybit also posted higher transaction counts, according to CryptoQuant, an on-chain analytics firm that tracks exchange flows. The surge comes as the U.S. Senate prepares to vote on advancing the CLARITY Act on Sept. 15 and the Federal Reserve readies its latest interest-rate decision a day later.

CryptoQuant analyst Darkfost said the rise in deposits could indicate greater potential selling pressure following the recent altcoin rally, although 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, according to data shared by CryptoQuant analyst Darkfost on X. That compares with roughly 8,300 transactions in July, placing the latest reading near four times the earlier level and making Binance the main contributor to the increase in exchange inflows. As the largest cryptocurrency exchange by trading volume, Binance's deposit flows carry outsized weight in how analysts read exchange activity.

Other major exchanges moved in the same direction. Coinbase altcoin deposits rose from around 2,200 to 4,700 transactions over the period, while Bybit inflows climbed to roughly 2,700 transactions. Both increases mirrored the broader uptick in inflows seen across major venues.

The figures track the number of deposit transactions rather than the value of tokens transferred, so they do not show how much capital traders may ultimately sell.

CLARITY Act and Fed Decision Keep Traders Alert

The increase in deposits arrives as U.S. lawmakers prepare for another key step on the CLARITY Act. The Senate is set to consider the crypto market structure bill this week after lawmakers revised parts of the text. Market structure legislation addresses how digital assets are classified and which U.S. regulators oversee their trading, a jurisdictional question that has framed U.S. crypto policy debates for years. The legislation has drawn close attention across the digital asset market as traders assess possible changes to U.S. crypto regulation.

The Federal Reserve's rate-setting Federal Open Market Committee will announce its latest policy decision following its September meeting. Interest-rate expectations have already shaped crypto positioning through recent sessions. Traders typically watch Fed decisions for shifts 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 over the same period. TOTAL3, a widely followed measure of the total crypto market capitalization excluding Bitcoin and Ether, has increased by more than $136 billion, according to 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, and it 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. The data therefore point 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 on X 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 below 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 investment decisions.