- The dominance of the US Bitcoin supply fell by 11%.
- BTC sees the addition of less than 1% gain as it trades at around USD 26,700.
The recent development in the United States has raised concerns about the potential impact on Bitcoin and other cryptocurrencies. But new information shows that the amount of Bitcoin flowing into the US has declined. Does this reduction in supply outweigh the potential impact of a significant market shift in the US?
Read Bitcoin (BTC) Price Prediction 2023-24
The US Bitcoin supply is declining
Recent legal action against Binance US and Coinbase and the classification of certain crypto assets have left Bitcoin and other cryptocurrency holders wondering about the possible outcome. These developments in the United States have led to speculation about how market movements could affect the price of BTC.
However, recent data from Glasnode shed light on the situation. The influence of the US market on Bitcoin has diminished.
Source: Glassnode
In addition, a notable divergence was seen when looking at the supply metric and comparing year-over-year changes in BTC supply across regions. The overwhelming dominance of U.S. entities over the 2020-2021 period has reversed, with the dominance of U.S. supply dropping 11% since mid-2022.
In contrast, European markets have remained relatively neutral over the past year, while a significant increase in supply dominance has been observed during Asian trading hours.
Bitcoin supply to the US decrease further?
In a recent announcement on June 9 Binance USA informed its users about the impact of the SEC’s crackdown, which led to the suspension of certain services. As mentioned in the post, the platform is temporarily stopping USD deposits.
In addition, customers were notified that Binance US banking partners are preparing to temporarily pause fiat (USD) withdrawal channels as early as June 13, 2023.
As a result, Bitcoin holders in the United States can no longer withdraw or deposit funds directly from their bank accounts. This development may further reduce the dominance of the BTC supply in the region and weaken its influence on the market.
BTC’s current flow and price trend
Based on a CryptoQuant chart, Bitcoin has experienced a recent cash outflow, indicating that more BTC holders have withdrawn their holdings. The move is likely due to growing fear, uncertainty and doubt (FUD). In particular, on June 8, there was a negative flow of over 26,000 BTC as exchange withdrawals surged. However, at the time of writing, there was a positive flow of over 3,000 BTC.
Source: CryptoQuant
How much are 1,10,100 BTC worth today
Moreover, when examining Bitcoin’s daily timetable chart, it revealed minimal gains. At the time of writing, Bitcoin was trading with gains of less than 1%, worth around $26,700. The Moving Average Convergence Divergence (MACD) indicator suggested that the ongoing bear trend was weakening as a result of this slight price increase.
Source: TradingView