According to data from CryptoQuant, Binance’s bitcoin (BTC) reserves dropped by around 12,000 of these tokens in recent days, while Coinbase saw its numbers increase by around 5,000. According to these experts, the decrease in Binance reserves seems to be due to withdrawals, mostly from retail investors, who could have seen their confidence in the exchange affected after the latest events.
“The market is still nervous about the recent legal implications against Binance. In the short term, we will see more users move funds to compliant exchanges or licensed for greater peace of mind,” acknowledged Greta Yuan, head of research at the digital asset platform VDX in statements collected by the media ‘CoinDesk’. According to this expert, Coinbase “withstood the test of time.”
Binance’s role is reconfigured
Despite these movements, Bernstein experts believe that Binance will continue to beThe main ‘exchange’ worldwide, since it is in a solid enough position to get out of this hole relatively unscathed. In fact, Bernstein points out that the company has adequate funds to face the sanction while complying with the requirement to cease all operations of its US subsidiary.
However, the danger is there. Manuel Villegas, digital asset analyst at Swiss bank Julius Baer, highlights that it is important to put into perspective what l represents.Binance leaves the United States, one of the most important markets, since the platform represents almost 40% of global crypto spot volumes; Additionally, the company accounts for around a third of the open interest in BTC and ethereum (ETH) futures.
On the contrary, Coinbase has been identified as one of the great beneficiaries of this outcome. Especially since, according to experts, this sanction could be the last step before the US regulators are comfortable approving exchange-traded funds (Spot ETFs) that have been moving the market in recent months.
Coinbase, which is listed on the American Nasdaq stock exchange, would thus be one of the great winners when getting rid of a important rival. In this sense, CryptoQuant has identified in the last few hours a withdrawal of 1,000 BTC from the crypto exchange’s balance sheet and they believe that it could be an anticipation of the approval of these ETFs.
It should be noted that andl CEO of Coinbase, Brian Armstrong criticized Binance after learning of this sanction and assured that its business model, based largely on comply with the laws of each market, is the right one, even though it has forced them to move less quickly than other competitors. It is worth not forgetting that, despite being listed on the stock exchange, the SEC sued Coinbase for alleged violation of the stock market laws.
Source: Ambito
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