After the SEC's lawsuit against the world's largest cryptocurrency exchanges, Binance and Coinbase, large amounts of money and Bitcoin were exited from the exchanges.
In this context, CryptoQuant analyst examined the effects and reasons behind BTC outflows.
Evaluating the impact for investors first, the analyst said that the SEC lawsuit caused fear and uncertainty among crypto investors.
“The lawsuits against two leading exchanges, Binance and Coinbase, created a negative perception in the market, causing investors to question the general compliance and security measures of these platforms.
In this context, some investors have started to remove their Bitcoin assets from these exchanges.
Referring to the movement of Bitcoin from exchanges to external wallets, Bitcoin exchange outflows have seen a notable increase following the SEC's lawsuit against Binance and Coinbase.
This trend shows that users are actively withdrawing their Bitcoin holdings from these exchanges to alternative storage options, such as personal wallets or other exchanges that are perceived as more compatible.”
"Users prefer personal wallets that provide direct control over their crypto holdings and reduce their dependence on centralized exchanges," the analyst said. said.
Finally, the analyst stated that Bitcoins coming out of exchanges potentially lead to a decrease in liquidity.
“Increased outflows from Binance and Coinbase potentially lead to reduced liquidity.
This reduced liquidity, combined with concerns about regulatory compliance, could contribute to increased price volatility in the short term."
Increasing #Bitcoin Exchange Outflows Following SEC Lawsuits
"This reduced liquidity, combined with concerns surrounding regulatory compliance, may contribute to increased price volatility in the short term."
by @0nchained— CryptoQuant.com (@cryptoquant_com) June 8, 2023
*Not investment advice.
