Bitcoin flows from Binance to Coinbase after tumultous week
The crypto markets have observed a subtle yet noteworthy shift in Bitcoin (BTC) flows from Binance to Coinbase Pro amid Binance’s recent regulatory challenges and the anticipation of a spot Bitcoin ETF in the United States.
Data from CryptoQuant reveals that, as of 4:00 PM on Nov. 22, approximately 5,000 BTC exited Binance, finding a new home in Coinbase Pro, which saw an uptick of around 12,000 BTC in its reserves.
The catalyst behind this movement appears to be the legal troubles faced by former Binance CEO Changpeng Zhao. He recently pleaded guilty to anti-money laundering charges brought by U.S. authorities, leading to an agreement that also requires him to step down as CEO and pay a personal fine of $50 million.
Binance, in turn, agreed to a hefty fine of $4.3 billion. News of this has sent shockwaves throughout the crypto community, prompting investors to reevaluate their positions on several key exchanges. Previous reports confirmed an outflow of $1.2 billion from Binance over the past week.
In addition, the long anticipated approval of a Bitcoin spot ETF has contributed to the recent shift. With the possibility of a regulatory green light on the horizon, industry experts are positioning themselves to make windfall from the potential regulatory changes in the pipeline.
Coinbase, recognized as a leading U.S. exchange with a strong regulatory stance, stands to benefit as institutional players seek a stable and compliant trading environment. However, Coinbase has not been exempt from run-ins with the U.S. Securities and Exchange Commission (SEC) either.
Yet Coinbase remains a top U.S. exchange due to its embrace of regulation and lobbying. Its clientele predominantly comprises institutional players, entities that stand to benefit immensely ahead of a potential ETF approval.
Despite the movements, it’s worth noting that Binance still maintains a considerable lead in global crypto market volume, boasting nearly six times more activity than Coinbase in the last 24 hours.
Bitcoin recovers above $37,000
Notably, the shift in BTC funds coincides with a recent period of sustained volatility in the Bitcoin market. Following reports of Binance’s regulatory woes, BTC broke the psychological support levels of $37,000 and $36,000.
The asset eventually dropped to a low of $35,735 on Nov. 21, posting a 4.56% intraday loss. However, Bitcoin staged a recovery the next day, recouping losses triggered by bearish reports the asset reclaimed the $36,000-$37,000 level, resting at $37,861 by the end of Nov. 22.
The recovery campaign extended into Nov. 23, reviving bullishness in the broader market, as several altcoins recorded impressive gains as well.
BTC is up 2.42% over the past 24 hours and is currently trading at $37,452.
