According to recent data from Glassnode, an on-chain analytics firm, the current inflow levels for short term Bitcoin holders have experienced a slight surge. However, this still remains down when compared to its peak which came following certain key events that occurred last year.
Notably, the graph below highlights that the percentage of the short term holder Bitcoin supply sent to exchanges has witnessed a slight increase and landing up at 0.82%. Upon comparing this to the key peak inflows witnessed last year following the collapse of TerraLUNA in May and FTX exchange in November, the levels remain relatively down. After the collapse of LUNA in May, the peak inflow can be recorded at 1.8% whereas the FTX collapse took it to 1.47%.
However, even though the short term holders are holding their, the scenario is not the same across all the groups. Previous data from Glassnode had revealed that Bitcoin had contributed the highest capital inflows in the crypto market. Notably, the thirty-day net change of net inflows for Bitcoin was estimated to be around $4.47 billion and for Ethereum, it was averaged at $3.5 billion.
It also suggested that the same metric for stablecoins was in negative, indicating their growing trust in the asset it is pegged to amid the regulatory crackdown in the United States. On June 5th and June 6th, the US SEC, filed charges against two largest crypto exchanges- Binance.US and Coinbase.
Further, the regulator filed an emergency motion to freeze all the assets of Binance.US citing significant concerns. While the firm called the motion “unwarranted,” it delisted several Bitcoin and BUSD advanced trading pairs.
Amid the ongoing case, another set of data from Glassnode suggests that the net outflow levels for the exchange is continuing at a significant pace.The graph below suggests that following the lawsuit, the BTC outflow levels from the exchange was recorded to be 14,000 Bitcoin marking the eighth largest net outflow for the exchange.
While the high levels of Bitcoin are cited to be bullish and in large positive sentiment of the investors, the recent trend could suggest different sentiment. Notably, the recent outflow trail could most likely be driven by panic among investors especially due to the motion to freeze assets and delisting of BTC and BUSD advanced trading pairs.
Following the lawsuits, the crypto industry and personalities have expressed fear of the US losing its chances as the crypto hub while other nations and regions advance their positions. As reported by Todayq News the Bitcoin supply in the US has witnessed an 11% year-over-year dip since June 2022, indicating a loss of faith in Bitcoin’s resilience among American traders. As of writing, Bitcoin is trading at $26,495.40, about a 2.31% decline over the past five days.
