The US Securities and Exchange Commission’s (SEC) recent lawsuit against Binance and Coinbase is reported to have little or no effect on long-term Bitcoin (BTC) holders.
According to crypto market analysis provider Glassnode, the percentage of Bitcoin Long Term Holder Supply sent to exchanges remains extremely low at about 0.004%. In Glassnode’s definition, this means long-term holders, those who have held their BTC for over 155 days, are not liquidating their assets through these trading platforms. Glassnode analysis further detailed the limited likelihood of these long-held assets being readily liquidated.
Despite widespread expectations that the fear, uncertainty, and doubt (FUD) surrounding Coinbase and Binance would drive many to withdraw their assets, Glassnode’s insights showed the lawsuits made no difference to these holders.
When the SEC first disclosed Binance fees, followed by Coinbase’s about 24 hours later, the market showed a significant downtrend. Bitcoin (BTC) is still trading below the $26,000 resistance point, having dropped more than 5.32% in the following seven-day period. Thus, the market’s long-awaited recovery remains quite distant.
“Uncertainty in Cryptocurrencies!”
For now, Glassnode data confirms that long-term Bitcoin holders are unaffected by the uncertain regulatory environment surrounding Binance and Coinbase, and the possibility of a change in the long term continues to be debated.
With the allegations directed at both institutions regarding the trade and support of off-exchange crypto securities, exchanges are forced to delist the related assets in a move that will spare Bitcoin.
Despite extensive pressures from both the SEC and the Commodity Futures Trading Commission (CFTC), Bitcoin has always been exempt from Securities classification. With the defenses of Bitcoin maximalists like Jack Dorsey and Michael Saylor, Bitcoin and a few Proof-of-Work (PoW) tokens appear to retain their legitimacy in the near term.