The recent wave of regulatory pressure on two major crypto exchanges, Binance and Coinbase, resulted from the lawsuit filed by the United States Securities and Exchange Commission (SEC). Surprisingly, this development has had almost no effect on long-term Bitcoin (BTC) holders. According to data from Glassnode, a crypto market analytics provider, the percentage of Bitcoin Long-Term Holder Supply sent to exchanges is minimal, standing at just about 0.004%.
This suggests that long-term HODLers, defined by Glassnode as those who have held BTC for more than 155 days, are not liquidating their assets through these platforms. Glassnode’s analysis highlights that assets held in custody for such an extended period are less likely to be liquidated easily.
Despite widespread speculation that fear, uncertainty, and doubt (FUD) surrounding Binance and Coinbase would prompt significant asset withdrawals, the data indicates that the lawsuits have not influenced long-term HODLers. As market recovery continues to be elusive and Bitcoin’s value hovers below the $26,000 resistance point, many wonder if long-term Bitcoin holders will eventually change their positions.
For the time being, the unwavering stance of long-term Bitcoin holders remains unchanged despite Binance and Coinbase’s uncertain regulatory environment. However, it’s worth examining the potential long-term implications of these legal challenges.
One probable outcome of the SEC’s allegations against both entities, regarding trading and support for unregistered crypto securities, is that the exchanges will delist the concerned assets. Such a move would not directly affect Bitcoin, which has consistently been exempt from securities classification. Prominent advocates like Jack Dorsey and Michael Saylor argue that Bitcoin and a select few Proof-of-Work (PoW) tokens will likely maintain their legitimacy in the near term.
In conclusion, while the current regulatory landscape is cause for concern, especially for Binance and Coinbase, the confidence of long-term Bitcoin holders remains strong. This resilience in the face of adversity could be a testament to the trust in the asset’s potential or a staunch resistance to the pressure of regulators. Long-term HODLers seem to be unaffected by the ongoing legal tussles so far, and whether this trend will change remains to be seen.
The presented content may include the personal opinion of the author and is subject to market conditions. Conduct your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: Coingape
