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- The number of Bitcoins in US wallets has steadily declined since 2022.
- BTC’s price consolidation in recent months has had an impact on international supply distribution.
The Bitcoin offering [BTC] Ownership of US entities has steadily declined since 2022, according to a recent analysis of the main currency’s geographic supply distribution.
Read Bitcoin’s [BTC] Price forecast 2023-24
Dates of CryptoQuant showed that the cumulative BTC balance of US-based entities has been on a downward trend since June 2022. With a geographic supply breakdown of 612,472 BTC as of September 26, BTC holdings by US entities have fallen 64% over the past year.
In a recently published report by pseudonymous CryptoQuant analyst SimonaD, this shift, in addition to “rising interest rates and other economic factors,” is largely attributed to the country’s increasingly uncertain regulatory landscape.
Gary Gensler, chairman of the Securities and Exchange Commission (SEC), reiterated the position on crypto in the region in his testimony stated 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 about the crypto asset markets that suggests that investors and issuers are less deserving of the protection of our securities laws…Given that most crypto tokens are subject to securities laws, it follows that most crypto intermediaries must also comply with securities laws.”
The uncertain regulatory outlook for crypto in the US has led to strong weekly outflows from digital asset investment products in the region. According to weekly reports published by digital asset investment firm CoinShares, US investors have accounted for most of the outflows from crypto funds in recent weeks.
In his most recent reportCoinShares found that European investors have responded largely differently. Last week, the region reported an inflow totaling $16 million into crypto funds. According to CoinShares, European investors are “seeing the recent regulatory disappointment as an opportunity.”
Bad feelings have influenced hodling habits worldwide
In the first quarter of the year, the price of BTC rose astronomically. The rebound came as the overall market recovered from the aftermath of the unexpected collapse of cryptocurrency exchange FTX [FTT] in November 2022.
As of January 1, BTC was trading at $16,500. As demand increased and sentiment improved, the coin’s value rose above $30,000 in April, an increase of more than 80% in just four months.
Despite this rally, a difference in sentiment was noted from a regional perspective. While US entities reduced their BTC holdings, data from CryptoQuant showed coin balances in wallets outside the US rose between January and April.
Between January 1 and April 30, the supply distribution of BTC among US entities decreased by 2%. During the same period, the international supply distribution of BTC increased by 9%.
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However, after general market sentiment deteriorated in late April, international investors took a more cautious approach. BTC’s international supply distribution declined as the leading currency’s price continued to linger within a tight range.
According to data from CryptoQuant, the coin’s international supply distribution at 1.22 million BTC at the time of writing has plummeted 8% since May 1.
Source: CryptoQuant