According to data from blockchain analytics company Glassnode, the amount of Bitcoin held on cryptocurrency exchanges has just dropped to a three-month low. The level of Bitcoin stability on exchanges fell to 2,281,978.198 BTC, just below the previous low of 2,282,204.204 BTC seen on June 17.
This represents a significant decline in on-exchange reserves and could be an indication of growing skepticism among buyers in light of recent regulatory actions taken against certain major players in the crypto industry.
The two biggest cryptocurrency exchanges in the world, Binance and Coinbase, are facing regulatory challenges at the same time as the decline. The U.S. Securities and Trade Commission (SEC) has filed litigation against each site, which has increased scrutiny of the laxly regulated cryptocurrency sector.
The lawsuits appear to have caused buyers of cryptocurrencies to become uneasy, which has resulted in a transfer of Bitcoin holdings away from exchanges and perhaps into individual wallets for safety.
Using many important criteria, the daily on-chain change shift saw a $56.3 million outflow of Bitcoin from the internet. This further supports the idea that due to regulatory pressures; consumers are becoming more cautious. A bitcoin outflow occurs when more Bitcoin is transferred out of exchanges than is sent in, which may indicate that customers are choosing to keep their possessions in their own possession despite the ongoing turbulence.
The amount of Bitcoin supply that was last active between one and two years ago reached a one-month high of 2,582,043.952 BTC in addition to the decline in the exchange rate.
Additionally, the percentage of Bitcoin offers that were active more than two years ago reached a record high of 55.542%. This indicates that a sizeable chunk of Bitcoin’s total supply has lain dormant for a considerable amount of time, possibly indicating a rise in holders versus merchants, a development typically associated with longer-term increases in bullish mood.
