Ethereum

Solana

Bitcoin

Polygon

Glassnode published a report on Monday breaking down investors’ on-chain behavior after the U.S. Securities and Exchange Commission (SEC) sued two of the world’s largest cryptocurrency exchanges. 
The report acknowledged a boost to the number of short-term crypto holders sending their balances onto exchanges. 
<h2 id="exchange-deposits-and-withdrawals">Exchange Deposits and Withdrawals</h2>
The <a href="https://insights.glassnode.com/the-week-onchain-week-24-2023/" data-wpel-link="external" target="_blank">report</a> echoed findings from <a href="https://cryptopotato.com/binance-sees-massive-outflows-following-sec-lawsuit-data/" data-wpel-link="internal">last week</a> showing that Binance experienced significantly higher withdrawals immediately following the SEC’s Monday filing. The platform’s Bitcoin and Ethereum balances have fallen by 40,200 BTC (5.7%) and 324,000 ETH (7.1%) respectively over the past 7 days. 
Meanwhile, Binance’s stablecoin balance took the biggest hit, declining by $1.6 billion (20.9%) over the past week. Since FTX’s collapse in November 2022, Binance’s stablecoin balance has fallen a whopping 75% from $26 billion to just $6.5 billion today – largely spurred by another <a href="https://cryptopotato.com/what-will-happen-to-binance-if-sec-manages-to-kill-busd/" data-wpel-link="internal">SEC crackdown</a> against its Paxos-issued BUSD stablecoin. 
“The exchange still holds some of the largest reserves of any entity on-chain, and their BTC and ETH balances are still quite substantial,” clarified Glassnode.
Coinbase – which was sued the day after Binance for multiple securities law violations – faced relatively smaller Bitcoin (BTC) withdrawals of just 2300 BTC (0.5%). However, Ethereum withdrawals were much more pronounced at 291,000 ETH (8.0%), possibly indicating heightened investor fear around the company’s staking-as-a-service product. 
<h2 id="behavior-by-cohort">Behavior By Cohort</h2>
Investor behavior surrounding exchanges also seemed to differ by cohort: transactions of under $10 million comprised consistent withdrawals, while those over $10 million were consistent deposits, with net inflows ranging between $15 million to $30 million per day. 
“This suggests that very large entities (such as institutions) are more affected to a greater extent by the SEC news as compared to smaller entities,” wrote Glassnode. 
Furthermore, short-term crypto holders are showing heightened activity, accounting for 76% of recent BTC deposit volume (versus the typical 60%). Such deposits accounted for 0.93% of short-term holders’ total held balances on exchanges. By contrast, long-term holders showed “no discernible reaction to the news.” 
Analysis from CryptoQuant <a href="https://cryptopotato.com/bitcoin-btc-short-term-holders-not-willing-to-cash-out-amid-sec-fud-data/" data-wpel-link="internal">suggests</a> that even short-term holders are reluctant to sell their coins too heavily, as the cohort is waiting for a chance to realize more profit from its purchases. 
The entire crypto market slid after the SEC’s lawsuits last week, with heightened pain among coins specifically <a href="https://cryptopotato.com/the-sec-claims-these-coins-are-securities-in-the-lawsuit-against-coinbase/" data-wpel-link="internal">targeted</a> by the agency’s Coinbase filing: Solana (SOL), Cardano (ADA), and Polygon (MATIC). 
The post <a href="https://cryptopotato.com/how-did-investors-react-to-the-sec-binance-coinbase-fiasco-glassnode-reports/" rel="nofollow">How Did Investors React to the SEC, Binance, Coinbase Fiasco? Glassnode Reports</a> appeared first on <a href="https://cryptopotato.com/" rel="nofollow">CryptoPotato</a>.

How Did Investors React to the SEC, Binance, Coinbase Fiasco? Glassnode Reports

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