BTC supply on exchanges falls to 5-year low amid SEC-induced panic

Blockchain analytics provider – Sentiment – ​​revealed that the supply of bitcoin on cryptocurrency exchanges currently stands at 6.4%, the lowest level since February 2018.

The rapid shift towards self-custody methods could be the result of SEC legal actions against two major crypto platforms – Binance and Coinbase. The commission recently filed a lawsuit, accusing the companies of offering trading services with unregulated securities.

• sentiment data Shown That crypto traders continue to remove their bitcoin holdings from exchanges. Currently, only 6.4% of the BTC supply is held on such platforms, compared to 16% in early 2020.
• The last time the percentage was this low was in February 2018, amid a market correction that lasted several months.

#bitcoinThe exchange supply has now fallen to its lowest level since February 2018. Traders continue to come and go $BTC For self-defense during the surrounding uncertainty #binance And #coinbase, as long as this #SEC The cycle of lawsuits continues, this process should continue. pic.twitter.com/c7MQyMswgp

— Sentiment (@santimentfeed) June 14, 2023

• A main factor for the ongoing trend could be the recent legal battle that the US SEC launched against two crypto behemoths – Binance and Coinbase – and the subsequent trust issues that some exchanges may have with them.
• The watchdog’s harsh actions began on June 5, when it accused Binance, CEO Changpeng Zhao, and Binance.US of offering customers unlicensed products, such as its native token BNB and stablecoin BUSD, and sued them. filed.
• It targeted Coinbase a day later, claim of The latter acted as a broker, clearing agency and the National Securities Exchange without obtaining the necessary authorization. The agency also claimed that the platform enables trading services with unregistered securities including SOL, Matic, ADA and others.
• The sentiment graph also showed that exchanges saw the most widespread withdrawal of BTC since the collapse of FTX at the end of last year. Thus, it is safe to assume that the percentage of bitcoin stored on exchanges will continue to be on the lower end as there is a lot of uncertainty surrounding trading platforms.
• However, this is generally a positive sign for the asset, as selling pressure should be much less as fewer BTC are stored on exchanges.