Data shows that Bitcoin just saw its second major exit from Coinbase in a week as nearly $1.2 billion worth of BTC left the platform.
A large amount of Bitcoin was just withdrawn from Coinbase
As one analyst explained in a CryptoQuant Quicktake post, cryptocurrency exchange Coinbase just saw 17,000 BTC outflow. The relevant on-chain indicator here is “exchange outflow”, which measures the total amount of Bitcoin being transferred from the wallets of a given centralized exchange.
When the value of this metric is high, it means that investors are withdrawing large amounts from the platform at this time. Holders often place coins in self-custody when they plan to hold them for long periods, so this trend could be a sign that long-term accumulation is occurring in the market.
On the other hand, the low level of the indicator suggests that not many holders are transferring coins from these central entities at the moment. Depending on the trend in the opposite metric, the inflow of coins, such a trend, can be neutral or bearish for the price of the cryptocurrency.
Now, here is a chart showing the trend in Bitcoin exchange production specifically for Coinbase Advanced over the past week:
As the chart above shows, Bitcoin exchange production for Coinbase has skyrocketed over the last day. In total, 17,000 BTC left the platform with this massive withdrawal. At the asset’s current exchange rate, that pile would be worth a whopping $1.17 billion.
It is also evident from the chart that the indicator witnessed a very similar scale increase just a few days ago. Specifically, 16,800 BTC left Coinbase in that withdrawal event.
This would mean that there may have been two major buying moves in the stock market last week. Coinbase is known for being the preferred platform for US-based institutional entities, so it is possible that this potential purchase came from these large traders.
Since the approval of the Bitcoin exchange-traded fund (ETF) at the start of the year, BTC’s price action appears to have been affected by institutional investor moves, as another metric suggested.
Taking this fact into account, these outflows can naturally be optimistic for asset prices if they reflect the presence of buying pressure in the market.
BTC Price
Although this huge outflow happened for the cryptocurrency, its price has fallen, now falling to just $68,500. The following chart shows Bitcoin’s performance over the past few days.