Bitcoin Sees Another Major Coinbase Outflow: $1.2B This Time
Data shows Bitcoin has just seen its second large outflow from Coinbase in a week, as almost $1.2 billion in BTC has left the platform.
A Large Amount Of Bitcoin Has Just Been Withdrawn From Coinbase
As an analyst in a CryptoQuant Quicktake post explained, the cryptocurrency exchange Coinbase has just seen the exit of 17,000 BTC. The on-chain indicator of relevance here is the “exchange outflow,” which measures the total amount of Bitcoin being transferred out of the wallets of a given centralized exchange.
When the value of this metric is high, it means that the investors are withdrawing large amounts from the platform right now. Generally, holders take coins off to self-custody when they plan to hold for extended periods, so this trend can be a sign that long-term accumulation is happening in the market.
On the other hand, the indicator’s low level suggests not many holders are transferring coins out of these central entities at the moment. Depending on the trend in the opposite metric, the exchange inflow, such a trend, may be either neutral or bearish for the cryptocurrency’s price.
Now, here is a chart that shows the trend in the Bitcoin exchange outflow specifically for Coinbase Advanced over the past week:
The value of the indicator appears to have been quite high over the past day | Source: CryptoQuant
As the above graph shows, the Bitcoin exchange outflow for Coinbase has spiked in the past day. In total, 17,000 BTC have moved out of the platform with this massive withdrawal. At the current exchange rate of the asset, this stack would be worth a whopping $1.17 billion.
It’s also apparent in the chart that the indicator had witnessed a spike of a very similar scale just a few days ago. Specifically, 16,800 BTC had flowed out of Coinbase in that withdrawal event.
This would mean two major buying moves may have occurred on the exchange in the past week. Coinbase is known to be the preferred platform for US-based institutional entities, so it’s possible that this potential buying came from these humongous traders.
Since the Bitcoin spot exchange-traded fund (ETF) approval back near the start of the year, the BTC price action has appeared to have been affected by the movements of the institutional investors, as another metric has suggested.
Given this fact, these outflows can naturally be bullish for the asset’s price if they reflect the presence of buying pressure in the market.
BTC Price
While this huge outflow has just occurred for the cryptocurrency, its price has slid down, now falling to just $68,500. The chart below shows Bitcoin’s performance over the last few days.
The price of the asset seems to have observed a sharp plunge over the past day | Source: BTCUSD on TradingView
Featured image from iStock.com, CryptoQuant.com, chart from TradingView.com
