What asset freeze? Binance BTC outflows muted as users shun panic selling
2023.06.07 14:10
Bitcoin (BTC) hitting three-month lows did not spur hodlers to panic sell, on-chain data shows.
According to analytics firm Glassnode, BTC investors have largely ignored the latest crypto exchange legal battles.
On-chain losses “remain quiet”
BTC/USD dipped to just $25,350 on June 6, its lowest since mid-March — but it seems existing holders simply do not care.
The latest data covering on-chain transactions shows that in the midst of reactions to the Binance and Coinbase lawsuits, few were in “panic sell” mode.
A chart uploaded to Twitter by Glassnode showed realized losses — coins moving at a lower value than their previous transaction — staying cool.
This marked a shift in sentiment for the investor base as a whole, coming in stark contrast to the events that followed the implosion of exchange FTX in late 2022.
“Following a crescendo in US regulatory pressure on major cryptocurrency Exchanges Binance and Coinbase, the market experienced significantly volatile moves in both directions,” Coinglass reported.
“However, the magnitude of Realized Losses recorded On-Chain remains quiet at $112M. This remains -$3.05B (-96.5%) smaller than the largest recorded capitulation event, suggesting an increased degree of resilience amongst market participants.”
Bitcoin Entity-Adjusted Realized Loss annotated chart. Source: Glassnode/Twitter
For context, the FTX event sparked $145 billion in realized losses — over 10 times the June 5 tally.
Exchange BTC traders not rushing for the exit
The latest data available covering exchange balances tells a similar story of resilience.
Related: Binance net outflows hit $778M on Ethereum since SEC charges: Nansen
As per Glassnode’s tracking tools, major exchanges saw only a modest decrease in BTC balances on June 5–6.
This totaled around 12,600 BTC, potentially indicating a similar lack of desire among users to remove their funds from hot wallets.
Compared to FTX, the situation once again stands out, as mass exchange withdrawals characterized much of last November.
Bitcoin Exchange Balance chart. Source: Glassnode
Continuing, statistician Willy Woo noted that the lack of action at Binance came despite its United States regulators petitioning to freeze its domestic assets.
“Binance customers don’t care. Not seeing much BTC leaving, not yet at least,” part of Twitter commentary stated.
SEC motions to freeze assets on Binance exchange.
Binance customers don’t care. Not seeing much BTC leaving, not yet at least. pic.twitter.com/1zOxfV8vL3
— Willy Woo (@woonomic) June 7, 2023
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
