Bitcoin accumulation continues, exchange holdings hit 5-year low
Crypto.news – Long-term (BTC) holders are accumulating more coins, reading from the decreasing balances on top exchanges.
On Aug. 31, data from Glassnode, a blockchain analysis firm, reveals that the amount of “HODLed” or lost coins was at a five-year peak at 7.841 million BTC, or $213 billion.
The count of HODLed or lost coins involves tracking Bitcoin balances that have remained untouched for an extended period. This calculation involves subtracting the “liveliness” from one and then multiplying the result by the current circulating supply of Bitcoin.
The metric takes into account coins held long-term and those stored in older addresses, accumulated during times when Bitcoin was relatively cheaper. Over time, the disregard for private keys has led to these funds becoming inaccessible.
Bitcoin’s liveliness refers to the proportion of total coin days destroyed to the sum of all coin days ever created. This value increases when long-term holders sell their Bitcoin, and vice versa. The concept of coin days destroyed refers to the product of the number of coins and days since they were last moved.
Additional data from Glassnode on the same day reveals that Bitcoin held on exchanges was at a five-year low at 2.26 million BTC, or around $61.28 billion.
Recent regulatory pressure on Binance, the world’s largest crypto exchange, might be a reason behind the outflow. Increased scrutiny has sparked worries about the exchange’s adherence to securities rules and its capability to handle global financial regulations.
A major concern stems from the US Securities and Exchange Commission (SEC). The regulator is accusing Binance of potential legal breaches. This has underscored the necessity for Binance to tackle these allegations to uphold its standing in usually competitive crypto sphere.
Yi He, a major stakeholder in Binance, has been vocal about the company’s stance. In a series of interviews, she argued that Binance is not the antagonist it’s portrayed. She acknowledged the importance of regulation for investor protection and expressed respect for regulatory institutions, indicating a potential common ground between Binance and the authorities.
Binance and multiple other crypto exchanges, including Coinbase (NASDAQ:), are being scrutinized for potential breaches of securities regulations.
Binance has operated largely unregulated since launching, providing a range of crypto services to its global clientele. However, since the FTX collapse in November 2022, regulators have become more vigilant, concentrating on the risks and compliance matters associated with crypto operations.
Consequently, the exchange has been accused in various countries, including the US, UK, Japan, Germany, and Thailand, for being non-compliant.
In reaction, Binance has acted to tackle compliance worries. They’ve strengthened their legal team by adding former compliance experts and simultaneously suspended certain offerings.
This article was originally published on Crypto.news