Over 50% of BTC Leave US Exchanges
Because of ambiguous regulations in the United States, more than half of the bitcoin held by crypto firms for their customers has been transferred to offshore and international exchanges.
According to a CryptoQuant research report shared with CryptoPotato, BTC reserves on US-based crypto exchanges have fallen to 2017 levels due to losses to non-US platforms.
The significant decline in BTC reserves on American exchanges is the result of the crypto industry’s lack of a clear rule book. Regulators have resorted to an enforcement-based approach, driving cryptocurrency firms offshore.
Several exchanges have decided to leave the United States, while others have suspended certain products and services due to allegations of violations. The country is gradually losing its market share of emerging and existing sectors as de-dollarization heightens.
Aside from decreasing BTC reserves in the US, ether reserves have also been steadily declining. Approximately 56% of ETH on crypto exchanges is held outside of the United States.
Furthermore, the trading volume of international crypto exchanges is four times that of US-based platforms. Bitcoin’s spot trading volume dominance in the United States has fallen below 2017 levels and is now at 21%. According to the report, American exchanges have little-to-no exposure to perpetual futures trading markets, which have 11x the volume of spot trading volume.
(With inputs from Shikha Singh)
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