Data shows that BTC experienced massive outflows from Coinbase twice in a week, with nearly $1.2 billion in BTC leaving the platform.
As one analyst explained in a CryptoQuant Quicktake post, crypto asset exchange Coinbase just had 17,000 BTC exit.
A related on-chain metric is “exchange outflows,” which measures the total amount of BTC transferred out of a wallet on a centralized exchange.
When the value of this indicator is high, it means that investors are withdrawing large amounts of money from the platform.
Generally speaking, holders will withdraw BTC for self-custody when they plan to hold it for the long term, so this trend could be a sign that long-term accumulation is occurring in the market.
On the other hand, the indicator’s low levels suggest that not many holders are currently moving assets out of these central entities.
Depending on the trend in the opposite indicator, namely exchange inflows, the price impact of this trend on the Crypto asset could be neutral or bearish.
The chart below shows the trend of BTC exchange outflows over the past week, specifically Coinbase Advanced:
As shown in the chart above, Coinbase’s BTC exchange outflows have surged over the past day.
With this massive withdrawal, a total of 17,000 BTC flowed out of the platform. At the current asset exchange rate, this pile of assets is worth as much as $1.17 billion.
It's also clear from the chart that the indicator had seen a spike of similar magnitude just a few days earlier. Specifically, in the first withdrawal event, 16,800 BTC flowed out of Coinbase.
This means there may have been two significant buying moves on the exchange in the past week.
As we all know, Coinbase is the preferred platform for US institutional entities, so it is possible that these potential buying orders come from these large traders.
Since the BTC ETF was approved at the beginning of the year, BTC’s price action appears to have been influenced by the movements of institutional investors.
Given this fact, it would naturally be positive for asset prices if these outflows reflected buying pressure in the market.
While the Crypto asset has just experienced huge outflows, its price has also fallen, currently falling to $68,500.
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