The amount of bitcoin held on exchanges has been on a steady decline since mid-May, and at current level’s exchange supply is at its lowest since early January according to crypto analytics firm Santiment.
Santiment said, “The six-month low is a promising sign, as it generally will indicate that there is a decreased risk of more major BTC selloffs.”
Although exchange inflows began to spike in early May, a steep selloff followed after the middle of the month. With bitcoin selloff intensifying on May 19, culminating in a $1.2tn decline for the entire cryptocurrency market.
According to Cointelegraph, exchange flow data is an important metric for monitoring bitcoin’s price trajectory in the short to medium term. Net inflows often foretell a steep selloff as more investors transfer their holdings from cold wallets.
While bitcoin continues a downward trend, there is renewed confidence in the crypto asset with adoption in places like Latin America, and the anticipated shift in mining from China to other regions, breaking the China hold on the asset.
Also, Binance, one of the biggest crypto exchanges in the world, has been having run-ins with regulators globally. Recently, Thailand’s Securities and Exchange Commission filed a criminal complaint against the company after the authorities in the Cayman Islands, the U.K., and Japan issued similar warnings on it.
According to Bitcoin.com, Thailand’s SEC said it had issued a warning letter to Binance on April 5 but the company failed to submit a response within the specified time.
The regulator said that the company was operating its crypto exchange business in the country without a licence.
It said the company was liable to criminal sanction under Section 66 of the Digital Asset Businesses Emergency Decree.