The recent crackdown on Binance by six countries has not in any way affected its Bitcoin holdings. Supply remains strong and investors haven’t panicked as the case was during the crackdown on mining in China.
Binance, the world’s largest cryptocurrency exchange by trading volume, has recently faced a host of regulatory challenges.
More than six countries’ agencies have launched investigations against Binance in the last week, claiming the exchange does not meet regulatory requirements.
Surprisingly, this has had no effect on the exchange’s Bitcoin deposits. Binance’s Bitcoin reserves are still around 560K and are mostly range-bound.
This demonstrates that, despite the global regulatory onslaught on Binance, investors have not panicked, in contrast to the Chinese campaign, which resulted in massive inflows into Bitcoin exchanges.
This demonstrates that, despite the huge crackdown, Bitcoin investors’ confidence has not dwindled.
Institutional investors, on the other hand, have continued to accumulate during the last two weeks. Despite the recent price drop, the Purpose Bitcoin ETF in Canada has continued to grow.
The Purpose Bitcoin ETF now holds 22,300 Bitcoins worth $789 million, according to the statistics.
Due to the exodus of Chinese miners, the Bitcoin hashrate and mining activity have experienced a significant increase in recent months. According to Glassnode, the bitcoin mining difficulty has dropped by 28%, the lowest it has ever been.
#Bitcoin mining difficulty just saw its largest downward adjustment in history: -28%https://t.co/dREzQkzRBk pic.twitter.com/HO5DhzESY9
— glassnode (@glassnode) July 3, 2021
Over the previous two weeks, the Bitcoin hashrate has dropped considerably, correcting by more than 50% from its May 2021 peak.
In the month of July, though, Bitcoin whale activity is picking up again. Santiment, an on-chain data supplier, reports:
“Bitcoin’s whale addresses holding between 100 to 10k $BTC kicked off July with a 60k $BTC accumulation spike, the highest daily spike of 2021. These addresses hold 9.12M coins combined after holding 100k less $BTC just 6 weeks ago”.
Bitcoin (BTC) attempted a northward rise last week, breaking beyond $35,000 levels. It has, however, remained above these levels for only a brief time and is now under pressure once more.
Bitcoin is currently trading 2.88% lower at $34,187, with a market capitalization of $641 billion.