Bitcoin [BTC] Facing an uncertain future in the USA? Confirm new dates…

• Despite a decline on all exchanges, the drop in reserves on US exchanges appears to be more significant.
• With macro uncertainty looming, investors shied away from making bullish bets on BTC.

Bitcoin [BTC] continued its decline for the second straight day as its price dropped below the key $28,000 mark on May 1st. However, the king coin reversed the losses to some degree by hitting $28,006 at press time, data from CoinMarketCap showed.

Read Bitcoins [BTC] Price prediction 2023-2024

While this reflected a drop of over 2% over the past 24 hours, BTC is up 2.40% on a weekly basis. With the collapse of another major banking institution, First Republic Bank, it remains to be seen whether BTC can survive as unscathed as it did during March’s banking turmoil.

Confidence in US stock markets is eroding

While sentiment towards Bitcoin has been bullish since early 2023, it has faced hurdles in one of the largest financial and crypto markets in the world, the US. According to blockchain analytics firm CryptoQuant, BTC reserves on US exchanges have plummeted since early 2023.

The analysis highlighted that despite a long-term decline on all stock exchanges, the drop in reserves on American stock exchanges seems to be more significant. A key reason for the decline could be increased scrutiny by U.S. regulators over the way crypto assets are handled on centralized exchanges. Earlier this year, Kraken, the second largest exchange in the US, was forced to suspend its staking services after the SEC fined Kraken $30 million for irregularities in its staking program.

As a result, investors began to favor self-custody and offshore exchanges to move their BTC holdings.

Source: CryptoQuant

Additionally, data from DeFiLlama underscored the stark contrast between BTC holdings on US-based trading platforms and offshore platforms. The share of BTC tokens on Binance was more than 25% of the total, while the share on Binance.US, the company that only serves US clients, was drastically low.

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Similarly, BTC occupied a 31% share of all assets on Seychelles-based exchange OKX[OKB] while Hong Kong-based Bitfinex’s reserves consisted of almost 60% BTC tokens.

BTC: Bullish Sentiment Fading?

With macro uncertainty looming, investors shied away from making bullish bets on BTC. Data from Coinglass indicated a sharp increase in the number of short versus long positions.

Source: coin jar

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