On-chain data reveals that a mild flow of funds between the Binance and Coinbase Pro crypto exchange was recorded recently. 
Coinbase now leads in the United States in terms of lobbying and regulation. 

The recent development with the Binance exchange has resulted in a turnaround for Bitcoin investors trading on the Binance exchange. According to recently published data from on-chain analysis platform CryptoQuant, Bitcoin (BTC) has been moving from Binance to Coinbase Pro.

Per CryptoQuant’s observation, a movement of flows was recorded between Binance and Coinbase Pro. The movement took place at 16:00 on the 23rd of November. It is worth noting, however, that the flow of funds is not that significant.

The new development has increased Coinbase’s reserves, while Binance’s reserves have dropped mildly. Cryptoquant also noted that the Bitcoin ETF Spot is on the verge of being approved. Should this come to fruition, Binance might take a major hit. In the long run, this could open the pathway for newcomers to make their way into the crypto market.

As CryptoQuant wrote;

Coinbase’s reserves have since increased by around 12,000 BTC while Binance’s have decreased by 5,000 BTC. The Bitcoin ETF Spot is close to being approved and taking the big Binance out of the game is essential for the new players who are coming into this market.

Bradley Park, a Web 3 analyst at CryptoQuant, said the reduction in Binance’s Bitcoin reserve is due to retail outflows.

Brian Armstrong’s Coinbase poised to lead  the U.S. Crypto market

The recent saga between Binance and its CEO has had a remarkable impact on the entire cryptocurrency market. Although the fund’s outflows from Binance have more to do with securing a position in the Bitcoin Spot ETF market, many prominent figures are asserting that Binance is in a very crucial stage.

Speaking to this effect was Greta Yuan, the head of research at Hong Kong-based digital asset platform VDX.

In a note to Coindesk, Yuan explains the state of the market following Binance’s recent revelation. She maintains that Binance is likely to lose more of its users to other competitor exchanges.

The market is still nervous about the recent legal implications against Binance. In the short term, we will see more users move funds to complaint or licensed exchanges for peace of mind. Coinbase has stood the test of time.

Coinbase is currently leading the US exchange today in terms of regulation and lobbying. Additionally, its exchange volume is largely made up of institutional players, CryptoQuant added.

Despite Binance’s Spot volume exceeding that of Coinbase over the past 24 hours, institutional players are expected to continue to inject more inflows into Coinbase in the long term.

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Filed under: Bitcoin - @ November 24, 2023 11:17 am