- The number of Bitcoins held in US wallets has been steadily declining since 2022.
- BTC’s price consolidation in recent months has impacted its international supply distribution.
The supply of Bitcoin [BTC] According to a recent analysis of the leading coin’s geographical supply distribution, US holdings have been steadily declining since 2022.
Read Bitcoins [BTC] Price prediction 2023-24
Data from CryptoQuant showed that the cumulative BTC balance of US-based companies has been trending downward since June 2022. With a geographical supply distribution of 612,472 BTC as of September 26th, US corporate BTC holdings have fallen by 64% over the past year.
A recent report from pseudonymous CryptoQuant analyst SimonaD attributes this shift largely to the country’s increasingly uncertain regulatory landscape, in addition to “rising interest rates and other economic factors.”
Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated the stance on crypto in the region in his report Transcript explained before the Senate Banking Committee hearing on September 12 that crypto assets are securities and should be regulated by his agency.
According to Mr. Gensler:
“There is nothing in the securities markets for crypto assets to suggest that investors and Issuers are less deserving of the protection of our securities laws. Since most crypto tokens are subject to securities laws, most crypto intermediaries must also comply with securities laws.”
The uncertain regulatory outlook for cryptocurrencies in the US has led to a surge in weekly outflows from digital asset investment products in the region. According to weekly reports from digital asset investment firm CoinShares, investors in the US have accounted for the majority of outflows from crypto funds in recent weeks.
In its latest report, CoinShares noted that European investors have largely reacted differently. Last week, the region reported inflows into crypto funds totaling $16 million. According to CoinShares, European investors “see the recent regulatory disappointment as an opportunity.”
Bad feelings have impacted hodling habits worldwide
In the first quarter of the year, the price of BTC rose astronomically. The uptrend came as the broader market recovered from the fallout from the unexpected collapse of cryptocurrency exchange FTX [FTT] in November 2022.
On January 1st, BTC was trading at $16,500. As demand increased and sentiment improved, the coin’s value rose to over $30,000 by April, rising over 80% in just four months.
Despite this rally, there was a divergence in sentiment from a regional perspective. While US companies reduced their BTC holdings, data from CryptoQuant showed that coin holdings in wallets outside the US increased between January and April.
Between January 1 and April 30, the supply distribution of BTC among US companies fell by 2%. During the same period, BTC’s international supply distribution increased by 9%.
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However, after overall market sentiment deteriorated in late April, international investors became more cautious. The international supply distribution of BTC declined as the price of the leading coin fluctuated in a narrow range.
According to data from CryptoQuant, the coin’s international supply distribution has plunged 8% since May 1, with 1.22 million BTC at press time.
Source: CryptoQuant
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