The U.S. Securities and Exchange Commission’s (SEC) legal action against Binance and Coinbase, the world’s two largest cryptocurrency exchanges, has put Bitcoin (BTC) and the rest of the crypto market under intense selling pressure. Regulatory crackdowns in the U.S. and the West have led to a significant shift of Bitcoin supply to the East.
Data derived on-chain by Glassnode reveals a significantly higher outflow of Bitcoin from the West to the East in the past year. The West primarily refers to the U.S., as the supply of BTC in Europe has remained relatively stable. In its latest report, Glassnode stated:
There is a clear divergence in the annual BTC supply change according to geographic regions. The overwhelming dominance of U.S. institutions in 2020-2021 has sharply reversed, with Bitcoin supply dominance in the U.S. falling by 11% since mid-2022. While the dominance of BTC supply in Europe has remained neutral over the past year, there is a noticeable increase in supply dominance in Asia.
Glassnode also made an interesting observation about significant changes in Tether (USDT), saying, “Tether has become more popular in countries with weaker currencies and where access to the U.S. dollar is difficult. Moreover, with the U.S. implementing stricter rules for cryptocurrencies, people are moving their USDT, especially to the East.”
Bitcoin Price and Trading Volume
After the SEC’s legal action against Binance and Coinbase, Bitcoin’s price, which had dipped below $26,000, rebounded back over the crucial support level of $26,300 and managed to hold there. At the time of writing, data shows that BTC is trading at $26,503, with a market cap of $514 billion.
With the U.S. regulator targeting Binance, the market depth of BTC on Binance.US, the exchange’s U.S. branch, has dropped by 70% in the last three days. The suspension announcement of all U.S. dollar deposit transactions on Binance.US suggests this downturn is expected to continue.
On the other hand, Santiment reports that the number of unique Bitcoin wallet addresses interacting has exceeded 1 million in the last two days amid rising volatility.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!