The amount of Bitcoin held on cryptocurrency exchanges has just plummeted to a three-month low, according to data from blockchain analytics firm Glassnode. Bitcoin balance on exchanges dipped to 2,281,978.198 BTC, slightly below the previous low of 2,282,204.204 BTC observed on June 17.
This marks a notable decrease in on-exchange reserves and could be an indication of growing uncertainty among investors following recent regulatory moves against some major players in the crypto space.
The plunge comes amid regulatory headwinds for Binance and Coinbase, the world's two largest cryptocurrency exchanges. Both platforms have faced lawsuits from the U.S. Securities and Exchange Commission (SEC), which has increased scrutiny on the loosely regulated crypto market.
The lawsuits appear to have sparked anxiety among crypto investors, causing a shift of Bitcoin holdings away from exchanges, potentially into private wallets for safekeeping.
In other key metrics, the daily on-chain exchange flow saw a net outflow of Bitcoin amounting to $56.3 million. This further reinforces the idea of investors becoming more cautious in light of regulatory pressures. A net outflow indicates more Bitcoin being transferred out of exchanges than into them, possibly suggesting that investors are opting for self-custody of their assets amid the ongoing turmoil.
In addition to the decrease in exchange balance, the amount of Bitcoin supply that was last active between one and two years ago reached a one-month high of 2,582,043.952 BTC.
Furthermore, the percent of Bitcoin supply last active over two years ago reached an all-time high of 55.542%. This indicates that a considerable proportion of Bitcoin's total supply has remained dormant for a significant period, potentially suggesting an increase in holders as opposed to traders, a trend often linked to more bullish sentiment in the long term.