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The recent lawsuit filed against Binance and Coinbase Exchange by the United States Securities and Exchange Commission (SEC) is having little or no impact on long term Bitcoin (BTC) HODLers. According to data from crypto markets analytics provider, Glassnode, the percentage of Bitcoin Long-Term Holder Supply sent to Exchanges remains extremely low at just about 0.004%.
The percentage of #Bitcoin Long-Term Holder Supply sent to Exchanges remains extremely quiet at 0.004%.
This highlights the profound inactivity of the cohort amidst elevated market distress, remaining indifferent to the #Binance and #Coinbase regulatory charges. pic.twitter.com/yWfdQHu4Ca
— glassnode (@glassnode) June 11, 2023
What this means is that long term HODLers, which according to Glassnode’s definition are those who have held their BTC for more than 155 days, are not liquidating their assets through these trading platforms. Glassnode in its analysis has already detailed the limited likelihood that assets in custody for this long period will be liquidated easily.
Against the general expectations that the Fear, Uncertainty, and Doubt (FUD) surrounding Coinbase and Binance will push many to withdraw their assets, the Glassnode insight showed that the lawsuits has made no difference on these HODLers.
When the SEC first announced the Binance charges and followed it up with that of Coinbase about 24 hours later, the market responded in a very bearish manner. The long sought recovery of the market is still quite far away as Bitcoin (BTC) is still trading at below the $26,000 resistance point after falling more than 5.32% over the trailing 7-day period.
Will Long Term Bitcoin Holders Change their Position?
For now, the Glassnode data confirmed that long term Bitcoin holders are unfazed by the uncertain regulatory environment surrounding Binance and Coinbase, the likelihood of things changing in the long term remains a subject up for debate.
With the allegations brought against both entities especially as it concerns the trading and support for unregistered crypto securities, the exchanges are bound to delist the concerned assets, a move that will exempt Bitcoin.
Despite the broad crackdown from both the SEC and the Commodity Futures Trading Commission (CFTC), Bitcoin has always been exempted from Securities classification across the board. With the loud voice of Bitcoin maximalists like Jack Dorsey and Michael Saylor, Bitcoin and a few Proof-of-Work (PoW) tokens are likely to be the crypto that will maintain legitimacy in the near term.