CryptoQuant: “Drop in BTC and ETH Reserves”

There were major decreases in Bitcoin and Ethereum reserves of US-based exchanges. According to The Block, CryptoQuant wrote in its report that BTC and ETH reserves on US-based crypto exchanges fell below 50% due to the ongoing regulatory pressure in the country.

BTC and ETH reserves of US-based cryptocurrency exchanges were dethroned by offshore/international exchanges. Bitcoin reserves of US-based exchanges fell to the lowest level since January 2017. The dwindling cryptocurrency reserves potentially mean users are withdrawing their assets from exchanges for security concerns or to keep their funds in their private wallets.

Evaluating the lawsuits filed by the SEC, CryptoQuant stated:

The US government and regulators are complicating the functioning of US-based cryptocurrency businesses. The SEC is unclear on how exchanges will abide by its rules. This is exactly why some exchanges have decided to cease their operations in the US. Because some US-based exchanges announced their new platforms to operate outside the US.

The CryptoQuant report also stated that the market cap of US-based stablecoins has dropped by 35% and has lost $15 billion so far in 2023. Last week, the SEC sued Binance and Coinbase for allegedly violating securities laws.