The US Securities and Exchange Commission’s (SEC) latest crackdown on the cryptocurrency market has had significant repercussions on major cryptocurrencies. Tokens, such as Polygon’s MATIC, Cardano (ADA), and Solana (SOL), have seen double-digit losses overnight, with Bitcoin’s decline being relatively modest in comparison.
As Glassnode’s on-chain data shows, Bitcoin’s Exchange Outflow Volume (7d MA) has reached a 1-month high of $39,781,339.94, surpassing the previous peak on June 9, 2023. With the recent wave of users transferring their crypto assets away from exchanges, such as Coinbase and Binance, which are facing legal action from the SEC, the total amount of Bitcoin being withdrawn from centralized exchange wallets has surged exponentially.
Typically, investors withdraw their Bitcoin from exchanges to store them in offline wallets for longer periods. This behavior often leads to a temporary shortage of supply amidst growing demand for the asset. Consequently, it usually signals an optimistic outlook for Bitcoin, as selling pressure recedes over time.
On the other hand, Bitcoin’s performance amidst the market turbulence highlights the stoicism of Bitcoin “hodlers”, or long-term investors. Glassnode’s data reveals that these investors are undeterred by the market situation, accumulating approximately 37,400 tokens per month. This behavior suggests a strong conviction in Bitcoin’s long-term value and potential, even in the face of regulatory challenges.
Currently, Bitcoin is trading at $25,627, a 4% decrease in the past 24 hours. In contrast, the cryptocurrency experienced a 5.67% decline over the previous week. While the SEC continues to challenge the viability of cryptocurrencies, its crackdown on major exchanges contradicts Nigeria’s SEC’s recent declaration of Binance as “illegal,” adding more uncertainty to the global crypto atmosphere.
Despite the various hurdles faced by the cryptocurrency market, many enthusiasts, like Cathie Wood, predict that Bitcoin’s price could reach an astounding $1 million by 2030. This projection offers hope to investors but is also a reminder that the road to achieving such lofty aspirations may not be smooth.
The content presented may reflect the author’s personal opinion and is subject to market conditions. Conduct thorough market research before investing in cryptocurrencies. The author and publication hold no responsibility for personal financial losses.
Source: Coingape
