Bitcoin HODLers Defy Market Distress and Regulatory Charges, Holding Firm Amidst Legal Battles
The recent regulatory charges brought against Binance and Coinbase by the United States Securities and Exchange Commission (SEC) have sent shockwaves through the cryptocurrency market. However, a surprising revelation has emerged from the data provided by Glassnode, a prominent crypto markets analytics provider: long-term Bitcoin HODLers seem unaffected by the legal turmoil.
Bitcoin HODLers Stay Strong Amidst Market Distress And Regulatory Charges
According to Glassnode’s analysis, the percentage of BTC Long-Term Holder Supply sent to Exchanges remains strikingly low, at a mere 0.004%. This figure highlights the profound inactivity of this particular cohort amidst the heightened market distress triggered by the lawsuits against Binance and Coinbase.
Glassnode defines long-term HODLers as individuals who have held their BTC for over 155 days. These steadfast holders have demonstrated their commitment by refraining from liquidating their assets through the implicated trading platforms. Glassnode’s findings suggest that assets held for an extended period are unlikely to be readily liquidated, aligning with their earlier analysis.
Contrary to the general expectations that the Fear, Uncertainty, and Doubt (FUD) surrounding Coinbase and Binance would spur a mass exodus, the data from Glassnode indicates that these HODLers have remained indifferent to the regulatory charges. Even when the SEC announced charges against Binance, followed by those against Coinbase approximately 24 hours later, the market responded with a significant bearish trend. Bitcoin continues to trade below the $26,000 resistance point, witnessing a decline of over 5.32% in the past seven days.
The resilience of long-term Bitcoin holders amid the uncertain regulatory environment surrounding Binance and Coinbase raises questions about the potential for change in the long run. While the current data confirm their steadfastness, it remains debatable whether this attitude will persist.
Considering the allegations brought against both exchanges, particularly regarding the trading and support for unregistered crypto securities, it is highly likely that the concerned assets will be delisted. However, Bitcoin is expected to be exempt from such measures. Throughout the broader crackdown by the SEC and the Commodity Futures Trading Commission (CFTC), Bitcoin has consistently been excluded from being classified as a security.
The continued legitimacy of Bitcoin and a few other Proof-of-Work (PoW) tokens may be supported by influential Bitcoin maximalists like Jack Dorsey and Michael Saylor. Their strong advocacy for Bitcoin reinforces the notion that it will likely maintain its status soon.
As the market navigates these uncertain times, long-term Bitcoin HODLers have chosen to remain resolute, undeterred by the legal battles faced by Binance and Coinbase. Their unwavering confidence in the cryptocurrency indicates a steadfast belief in its long-term prospects, regardless of the current regulatory challenges.