Bitcoin's supply on the Binance exchange has fallen to its lowest level since February 2018, according to data analytics firm Santiment.
Cryptocurrency Exchange Binance, The Number of Bitcoins Has Dropped To The Lowest Level In Recent Years
Amid lawsuits by the U.S. Securities and Exchange Commission (SEC) against major cryptocurrency exchanges Binance and Coinbase, investors are potentially moving their Bitcoins into their own custodians to protect themselves from regulatory uncertainty.
Santiment predicts that this trend will continue as long as these lawsuits continue.
The US Securities and Exchange Commission (SEC) accuses the two major crypto exchanges, Binance and Coinbase, of not properly recording their operations, among other allegations.
Binance, including its subsidiary BAM Trading, is allegedly operating without the necessary permissions since 2017 and is also accused of selling unregistered crypto assets.
It is also alleged that Changpeng Zhao, the founder of Binance, invented a way to circumvent US laws and allowed Americans to use Binance.com.
Coinbase has also been accused of operating without proper registration since 2019 and says the SEC has deprived investors of necessary protections.
For Binance and Coinbase, these legal issues point to increased pressure from regulatory authorities on cryptocurrency exchanges.
As a result, we see a shift in investor behavior with a significant move towards Bitcoin's self-hiding, indicating a growing trend of self-protection among crypto investors amid regulatory uncertainties.
*Not investment advice.