As per the latest update from popular Twitter handle Bitcoin Archive, around 2000 Bitcoin’s have moved off from Coinbase recently. Meaning nearly $120 million worth of Bitcoins have left the exchange and into cold storage.
$117m #Bitcoin just moved from Coinbase to cold storage
Another 2,000 #BTC off the market
— Bitcoin Archive (@BTC_Archive) April 4, 2021
There has been a consistent outflow of Bitcoins from Coinbase over the last few months as institutional players continue to accumulate further. As on-chain data provider Glasnode writes in its latest market update, crypto exchange Coinbase has been “a preferred venue for accumulation by US institutions”. Below is the chart for the BTC balance on Coinbase for the last year.
As we know that institutional money started pouring into Bitcoin during Q4 2020, especially in December 2020. The above chart shows that there have been significant outflows since then over the last four months. Institutions started accumulating BTC at around $20K levels and it was then when the market confidence for the cryptocurrency grew exponentially. Every subsequent month, there have been heavy outflows from Coinbase. As Glassnode report states:
“An incredible stair stepping ‘whale cost averaging’ pattern emerged, as tens of thousands of coins were accumulated each month. The consistency, frequency and size of this balance change is astounding to see play out in on-chain data and really shows the aggressive accumulation by institutions this year”.
The report further goes to mention that there have been total combined outflows of 616K BTC from exchanges over the last year. Of this, Coinbase and Huobi alone contribute 2/3rd or 400K BTC outflows.
Bitcoin (BTC) Price Won’t Go Below $52K
Currently, Bitcoin (BTC) has been showing strong volatility as its price approached $60K over the weekend. However, the drying up of the trading volumes has failed to support the rally further. Last week, popular crypto analyst Ki-Young Ju wrote that the BTC price won’t go below $52K as most of the institutions have bought then.
Punting a short on $BTC now looks not a good idea.
Less likely to go below 52k as institutions might have bought $BTC at that level.
Chart https://t.co/20Dz85Y5mG https://t.co/CLfgUHVniZ pic.twitter.com/DA3jp0uCbN
— Ki Young Ju 주기영 (@ki_young_ju) March 29, 2021
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