- Bitcoin transaction fees rose and surpassed 2022 levels.
- Coinbase and Binance balances fell as market greed eased.
Although exempt from the US SEC hammer, From Bitcoin [BTC] response to the torrid regulatory landscape has become increasingly complex. As a result of the lawsuit filed by Coinbase and Binance, the total transaction costs have increased.
Read From Bitcoin [BTC] Price prediction 2023-2024
According to Glassnode, BTC transaction fees rose to 15.6 BTC. The last time this happened was at the peak of Bitcoin ordinal numbers adoption, which caused congestion in the network. In terms of exchanges, transaction costs rose unusually in 2022 when FTX also collapsed.
Total Exchange Transaction Fees are experiencing a third wave of increased rate pressure after SEC charges against #Binance And #Coinbaseincreasing to a total of 15.6 BTC.
🔴 FTX Implosion: 12.3 BTC
🔵 Inscription mania: 41 BTC
🟠 Binance and SEC Regulations: 15.6 BTC pic.twitter.com/Z8HaZeQpkg— glassnode (@glassnode) June 10, 2023
Usually, Bitcoin transaction fees fluctuate. However, the statistic increases especially when the market is in bull season. But in cases like the SEC investigation, market participation increased. This increased demand thus meant that validating new blocks would have required more computing power.
While the SEC’s regulatory action impacted Bitcoin exchange fees, another key area that could have impacted the rise was Bitcoin fear and greed index.
Towards discomfort
Historically, adverse market trends have led investors to make hasty decisions, sometimes out of fear. Other times greed. Here, the SEC lawsuit created panic throughout the ecosystem.
Consequently, this affected the fear and greed index, which was around 52 before the regulator’s disclosure. At the time of writing, the statistic at 47 fell closer to fear territory.
Source: Alternative.me
Extreme fear here suggested that most investors were concerned, and this could present a buying opportunity. But when it is in the greed region, it suggested that the market was due for a correction.
However, at 47, the fear and greed index looked pretty neutral. Hence, the value meant that the overall sentiment towards the currency was relative between optimism and gloom at the time of going to press.
Exchanges are still in the fight to recover
Coinbase and Binance are feeling the effect of the SEC pressure. While the stock market outflow seems to have slowed down from the initial announcement, net position change on Coinbase remained negative at -23,906 BTC.
Source: Glassnode
The metric takes into account the 30-day net balance by calculating the difference between incoming and outgoing exchange rates.
Realistic or not, here it is The market cap of ETH in BTC terms
If the balance is negative, it means that the outflow was greater than the inflow. But if it’s positive, it suggests an exchange has had more inflows than withdrawals.
Surprisingly the net position change in Binance was much lower than Coinbase. Although CEO Changpeng Zhao (CZ) recently confirmed a total outflow of $329 million, BTC’s net position change on the exchange peaked at -14,358 BTC on June 10.
Source: Glassnode