News - Are crypto investors holding on to their coins?

By Mike Hesp

Are crypto investors holding on to their coins?

After the SEC sued Coinbase and Binance, the crypto market crashed. Which investors kept their cool?

After the U.S. Securities and Exchange Commission (SEC) filed charges against Coinbase and Binance, shares on crypto market dropped last week. The following chart shows the changes in holdings of major crypto assets (BTC, ETH and stablecoins) on Binance last week.

binance graph

Source: Glass node

It can be seen that mainly stablecoins were taken off the exchange namely -20.9%. But also BTC was taken off with -5.7% and as you can see in the graph also ETH flowed off Binance with -7.1%.

Coinbase shows a different picture: While stablecoin holdings remained more or less unchanged. BTC holdings fell by just 0.5%, more Ether -8.0% flowed out of the U.S. exchange compared to Binance.

binance graph

Source: Glass node

These developments could indicate that investors want to keep their coins themselves rather than store them on a centralized exchange. The following chart shows which category of crypto investors reacted the most to the shocking news from the US.

binance graph

Source: Glass node

Young BTC holders (STHs, in🔴) sent the largest amount of coins to crypto exchanges, possibly to sell them there. More than three-quarters of exchange inflows can be attributed to this category. Inter-exchange transfers (Inter, in 🟢), i.e., transfers between different exchanges, accounted for more than 20 percent of exchange inflows.

Long-term holders (LTHs, in 🔵) kept their cool despite market turbulence - only just under 2 % of stock market inflows came from this category

From this one could conclude that the long-term holders of Bitcoin and Co. have already experienced a lot of turmoil in the crypto market. Which means they won't be so easily upset by the latest developments from the United States these days.

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