According to CryptoPotato, the cryptocurrency market experienced a boost following Grayscale's victory against the US Securities and Exchange Commission (SEC), with Bitcoin rallying to $28k before settling near $27.4k. On-chain analyst Ali Martinez revealed that nearly 30,000 BTC were sent to crypto exchanges ahead of Grayscale's triumph, increasing the exchange supply from 1.13 million to 1.16 million BTC. Crypto analytic company Santiment also highlighted a substantial increase in the supply of Bitcoin on exchanges leading up to the event. Investors typically transfer coins to centralized crypto exchanges when they plan to sell their holdings or use them as collateral for trading derivatives. The recent rally was driven by derivatives exchanges, not spot ones, according to a CryptoQuant analyst. Bitcoin reserves of US-based exchanges have declined by at least 30% and up to 50% or more, while reserves on offshore trading venues offering derivatives trading have increased, indicating that derivatives and offshore exchanges are responsible for the current price action.