Will Bitcoin Exchange Reserve Ratio Turn Around After Binance News?
An analyst has pointed out that the BTC exchange reserve ratio for US and offshore platforms has followed a specific pattern during past bull markets. The exchange reserve ratio compares the reserves of two platforms or groups of platforms, indicating which type of exchanges users prefer. When the ratio declines, offshore exchanges gain steam as investors deposit their coins faster than US platforms. Conversely, an increase implies the dominance of American exchanges as their reserves grow relative to global platforms.
Bitcoin Exchange Reserve Ratio Trend
A chart shows that the Bitcoin exchange reserve ratio for US vs. foreign exchanges has been declining since the bear market but recently showed signs of turning around with a small increase. It is unclear if this is a trend or temporary deviation. However, recent events at Binance, including a leadership change and outflows from the exchange, may lead to a reversal in the BTC exchange reserve ratio favoring US-based platforms.
BTC Price
Bitcoin is currently attempting to breach the $38,000 level.
Hot Take: The Potential Impact of Binance’s Instability on Bitcoin
The recent events at cryptocurrency exchange Binance could trigger the next Bitcoin bull run if this pattern continues to form. The BTC exchange reserve ratio, which compares the reserves of US and offshore platforms, has shown signs of turning around after a decline. This reversal may be influenced by Binance’s leadership change and outflows from the exchange, favoring US-based platforms like Coinbase. If regulations on Binance lead to an increase in the percentage of Bitcoin held on US exchanges, it could signify readiness for the next bull market.
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