Hodlers Stand Strong: Bitcoin and Crypto Defy SEC Storm as Coinbase and Binance Lock Horns with Gary Gensler

• Data from Glassnode reveals that long-term Bitcoin holders, those who have held their BTC for more than 155 days, remain indifferent to the regulatory uncertainties shadowing Coinbase and Binance.
• The SEC lawsuits against these crypto exchanges had minimal impact on these holders, contradicting expectations that the regulatory Fear, Uncertainty, and Doubt (FUD) would spur significant withdrawals.

Amid the tempestuous regulatory climate surrounding cryptocurrency giants Coinbase and Binance, long-term Bitcoin (BTC) holders appear unmoved. This indifference is evident in the recent data released by Glassnode, a leading crypto market analytics provider, which shows a minimal percentage (approx. 0.004%) of Bitcoin Long-Term Holder Supply being transferred to exchanges.

Long-term holders, as defined by Glassnode, are those who have retained their Bitcoin for over 155 days. The minuscule percentage indicates a lack of significant asset liquidation via these trading platforms, despite the legal predicaments faced by Coinbase and Binance. The resilience of these holders aligns with Glassnode’s analysis, which outlines the decreased probability of liquidation for assets held for such extensive durations.

Contrary to widespread expectations that the regulatory Fear, Uncertainty, and Doubt (FUD) enveloping Coinbase and Binance would incite asset withdrawal, the data suggests otherwise. The lawsuits, initially targeting Binance and swiftly followed by similar charges against Coinbase, seemed to stir little concern among these stalwart holders.

The market’s response to the SEC’s actions, however, was notably bearish. Bitcoin’s recovery remains elusive, with the price stagnating below the $26,000 resistance level, following a drop of more than 5.32% over the past week.

The question persists – will these long-term Bitcoin holders alter their stance in the face of increasing regulatory scrutiny? According to current data, the verdict tilts towards continued indifference. This position could be influenced by the nature of the allegations levelled against both exchanges, primarily concerning the trading and support for unregistered crypto securities. As a consequence, exchanges may have to delist the implicated assets, with Bitcoin likely to be exempted.

Bitcoin has consistently escaped the classification of security in previous regulatory crackdowns, led by entities such as the SEC and the Commodity Futures Trading Commission (CFTC). Endorsements from Bitcoin maximalists like Jack Dorsey and Michael Saylor also bolster its legitimacy, suggesting that Bitcoin and select Proof-of-Work (PoW) tokens will likely retain their standing in the near term.