Binance Faces Capital Outflow and Bitcoin Reserve Reduction Amidst Regulatory Scrutiny
Against the backdrop of the U.S. Department of Justice investigation and the resignation of Binance CEO Changpeng Zhao, the Bitcoin reserves of the platform have decreased by 5,000 BTC, as reported by analysts at CryptoQuant.
Experts believe that a capital redistribution has occurred in the market. Specifically, they highlighted an influx of 12,000 BTC into the reserves of the Coinbase exchange:
Changes in Bitcoin reserves on Binance and Coinbase. Source: CryptoQuant.
According to analysts, the capital outflow has been triggered by the regulatory challenges faced by Binance. Additionally, CryptoQuant noted a general trend of decreasing Bitcoin reserves on centralized exchanges.
Despite occasional spikes, such as in October 2023, the overall trend remains negative, according to CoinGlass. Some experts attribute this to a loss of trust in exchanges following the FTX collapse, while others point to the prerequisites for a bullish phase.
Changes in Bitcoin reserves on centralized cryptocurrency exchanges. Source: Glassnode.
It’s worth noting that in the wake of news about fines for Binance and Changpeng Zhao, capital outflow from the exchange has exceeded $1 billion.
Despite these challenges, experts from Matrixport and Bernstein are confident that the company will maintain its leading position in the industry.
