Bitcoin Exchange Flows Collapse 91% Amid Binance EU Exit

Bitcoin's exchange-to-exchange flow has plummeted 91% in just 30 days, according to on-chain data from CryptoQuant. The sharp decline closely follows Binance's exit from the European Union and EEA under MiCA regulations.

The migration of European customers out of Binance onto regulated exchanges like Kraken and Coinbase likely caused the temporary reduction in exchange activity. This shift may be contributing to Bitcoin's struggle to break above $65,000.

A recovery in daily exchange flows above 800-1,000 BTC could signal that market liquidity has stabilized. However, until then, Bitcoin may continue trading within a relatively narrow range as market participants adjust to the changing exchange landscape.