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