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Binance Exchange Outflows Remain Minimal Despite Regulation-Focused Market Rout

2 mins
Updated by Kyle Baird
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In Brief

  • Binance reserves have declined by just 10,000 BTC.
  • The dip is tiny in when zooming out to a long-term view.
  • Altcoins that were deemed securities are getting hit hard.
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All eyes are on the world’s largest crypto exchange due to recent enforcement actions from the SEC, but Binance outflows have been minimal so far.

Crypto markets have shed more than $50 billion over the past 12 hours or so. The move follows the latest enforcement action from the U.S. Securities and Exchange Commission (SEC).

Binance was the target of this week’s round of regulatory wrath. However, there has not been an exodus from the exchange yet.

Binance Outflows Minimal

According to Glassnode, around 10,000 BTC has been withdrawn from Binance since the SEC lawsuit was issued on June 5. This works out as a decline of around 1.5% in Binance’s Bitcoin balance.

A larger decline was seen when crypto markets tanked in mid-March 2023.

Binance BTC Balance. Source: Twitter/@ WClementeIII
Binance BTC Balance. Source: Twitter/@ WClementeIII

CryptoQuant founder and CEO Ki Young Ju posted a couple of charts to demonstrate the statistical significance of the “biggest BTC outflows on Binance this year.”

It confirms that about that reserves have shrunk by about 10K-12K BTC. However, zooming out shows that it is just a blip in the grand scheme of things.

Binance Exchange Outflows. Source: Twitter/@ki_young_ju
Binance Exchange Outflows. Source: Twitter/@ki_young_ju

Binance CEO Changpeng Zhao commented on Gary Gensler’s tweet announcing his latest salvo in the war on crypto.  

“Wonder if he ever reads the comments under his post, from the consumers he is supposed to protect.”

In the name of “investor protection,” the SEC has caused a great deal of financial losses for many investors today.

According to CoinGlass, 111,545 traders were liquidated, with a total figure of $301.3 million liquidated over the past 24 hours.

Furthermore, long positions were the lion’s share of liquidations, with $292 million liquidated on June 5. Binance has seen nearly $100 million in exchange liquidations from derivatives positions over the past 24 hours.

If you want to read more about the best crypto exchange alternatives to Binance, check out our guide here!

Altcoin ‘Securities’ Getting Hammered

At the time of writing, the market rout appears to have slowed, with a total of $46 billion having left the space. Total capitalization is down 4.5% on the day to $1.13, keeping it range-bound on the 90-day timeframe.

Bitcoin was down 4.2% to $25,742, while Ethereum had shed 3.2%, falling to $1,812. This is nothing unusual for crypto markets.

Altcoin Losses. Source: Twitter/@santimentfeed
Altcoin Losses. Source: Twitter/@santimentfeed

However, the altcoins that the SEC has deemed securities have tanked. BNB dropped 8.4% to $276 at the time of writing. Cardano (ADA), Solana (SOL), Polygon (MATIC), Algorand (ALGO), and Cosmos (ATOM), among others, had lost between 7-8%.

Top crypto projects in the US | June 2024

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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