coingape.com 35 m Reading time: ~2 m
Crypto News: The regulatory crackdown on cryptocurrencies by the US Securities and Exchange Commission (SEC) has sent shockwaves through the broader crypto market, leading to a significant downturn. Major cryptocurrencies, including Polygon’s MATIC, Cardano (ADA), and Solana (SOL), experienced double-digit losses overnight, while Bitcoin’s decline was relatively modest compared to its altcoin counterparts.
Bitcoin’s Exchange Outflows Hit 1-Month High
According to Glassnode’s on-chain data, Bitcoin’s Exchange Outflow Volume (7d MA) has surged to a 1-month high of $39,781,339.94. This figure surpassed the previous 1-month high of $39,556,958.79, recorded on June 9, 2023. The term “exchange outflow” refers to the total amount of Bitcoin being withdrawn from centralized exchange wallets. This trend follows a recent wave of users moving their crypto assets away from exchanges, which have faced legal action from the SEC. As reported earlier on CoinGape, the federal agency filed lawsuits against Coinbase and Binance exchange, two prominent players in the crypto industry.
Typically, investors withdraw their BTC from exchanges to hold them in offsite wallets for extended periods. This behavior leads to a shortage of supply, especially considering the growing demand for Bitcoin. Therefore, it generally turns out to be a bullish signal for the crypto asset as the selling pressure on BTC also subsides gradually.
Read More: Cathie Wood Predicts Bitcoin’s Price To Reach $1Mn By 2030
Bitcoin’s Resilient Price Action Amid Market Turmoil
In contrast to the market turmoil, recent data indicates that Bitcoin hodlers, who prefer to hold onto the asset rather than seek quick profits, have remained resolute. Glassnode’s data reveals that these investors continue to accumulate BTC at a rate of 37,400 tokens per month. This accumulation suggests a strong belief in the long-term value and potential of Bitcoin.
As of the time of writing, the price of Bitcoin is being traded at $25,627, representing a 4% drop in the past 24 hours. In comparison, the flagship cryptocurrency experienced a 5.67% decline over the previous seven days.
Also Read: Binance Declared “Illegal” By Nigeria SEC, Ordered To Cease Operations