Long-term Bitcoin holders are standing sturdy amidst the storm, undeterred by the latest lawsuit filed towards Binance and Coinbase Exchange by the US Securities and Exchange Commission (SEC).
The resilience of those devoted holders is clear as knowledge from crypto markets analytics supplier, Glassnode, reveals that the share of Bitcoin Long-Term Holder Supply despatched to Exchanges stays extremely low, standing at a mere 0.004%.
While regulatory actions have despatched shockwaves by way of the crypto neighborhood, long-term holders of the crypto stay unwavering of their dedication to this pioneering digital asset.
The proportion of #Bitcoin Long-Term Holder Supply despatched to Exchanges stays extraordinarily quiet at 0.004%.
This highlights the profound inactivity of the cohort amidst elevated market misery, remaining detached to the #Binance and #Coinbase regulatory fees. pic.twitter.com/yWfdQHu4Ca
— glassnode (@glassnode) June 11, 2023
Their steadfast perception within the potential of Bitcoin to revolutionize the monetary panorama acts as an unbreakable bond that shields them from the turbulence of the current second.
FUD Fails To Shake Bitcoin Holders
Contrary to prevailing expectations that the latest lawsuits focusing on Coinbase and Binance would spur a mass exodus of cryptocurrency belongings, a complete evaluation by Glassnode has shattered this assumption. The knowledge offered by Glassnode exhibits that these authorized proceedings have had no discernible affect on the unwavering resolve of long-term BTC holders.
According to Glassnode’s classification, long-term holders embody those that have valiantly held their BTC for over 155 days, a powerful feat within the fast-paced world of cryptocurrencies. Remarkably, these people have proven no inclination to liquidate their belongings by way of the embattled buying and selling platforms.
Glassnode’s meticulous examination of the scenario has already demonstrated the restricted chance of belongings held for such prolonged durations being readily bought off.
Bitcoin retreats to the $25K area at the moment. Chart: TradingView.com
Bitcoin Challenges SEC’s Definition Of Securities
In the huge internet of the SEC’s efforts to categorise digital belongings as securities, one distinguished exception stands tall: Bitcoin. The SEC’s framework, hinging on the well-known Howey Test, faces vital hurdles when utilized to the world’s main cryptocurrency.
The Howey Test finds its roots in a landmark 1946 Supreme Court case involving the sale and leaseback of Florida orange groves by W.J. Howey Co. The courtroom deemed these leaseback preparations as funding contracts, necessitating their registration with the SEC.
Image: Investor's Business Daily
This case additional laid out the definition of a safety, particularly as “an investment of money in a common enterprise with profits to come solely from the efforts of others.”
Even at the moment, the SEC continues to depend on this measure. However, BTC’s distinctive attributes, staunchly defended by its proponents, forestall it from satisfying the necessities of the Howey Test.
Prominent figures inside the SEC, together with present chairman Gary Gensler and former chief Jay Clayton, have persistently expressed the idea that the alpha coin doesn’t fall underneath the definition of a safety.
Gensler reiterated this stance, stating unequivocally, “It’s not,” throughout latest public feedback.
Featured picture from NurPhoto/Getty Images
