The Rabbit Hole on Nostr: #Bitcoin reserves on exchanges fall to the lowest level in more than 5 years⚠️ ...
#Bitcoin reserves on exchanges fall to the lowest level in more than 5 years⚠️
With regulatory pressures against Binance and Coinbase, investors may be fleeing third-party custody.
Outflow remains intense, although they still hold around 2.12M #BTC.
This movement helps to increase the adoption of self-custody, however, it reduces the volume of trading on these platforms, something that consequently also reduces the total liquidity of the order books.
Something that ends up contributing to the current lateralization seen in the price of bitcoin.
Since there are fewer orders and less capital being traded, there is less directional influence on price.
This also brings a risk aversion bias, although at this moment the main risk is not due to the structure of the market, but due to the uncertainties surrounding these platforms.
With regulatory pressures against Binance and Coinbase, investors may be fleeing third-party custody.
Outflow remains intense, although they still hold around 2.12M #BTC.
This movement helps to increase the adoption of self-custody, however, it reduces the volume of trading on these platforms, something that consequently also reduces the total liquidity of the order books.
Something that ends up contributing to the current lateralization seen in the price of bitcoin.
Since there are fewer orders and less capital being traded, there is less directional influence on price.
This also brings a risk aversion bias, although at this moment the main risk is not due to the structure of the market, but due to the uncertainties surrounding these platforms.