Coinbase Sees Second-Largest Bitcoin Outflow Amid Market Correction
Amidst a market-wide correction, Coinbase experienced its second-largest Bitcoin outflow this week, with two massive withdrawals of 16,800 BTC and 17,000 BTC, respectively.
Typically, when assets depart from centralized crypto exchanges like Coinbase, it indicates a bullish sentiment as it restricts the immediate selling pressure on those coins. Inflows to crypto exchanges, on the other hand, signal an impending sale, particularly following periods of significant price appreciation in a bid to secure profits.
- Various factors could explain the latest string of outflows as flagged by CryptoQuant, including massive institutional interest catalyzed by the introduction of spot Bitcoin ETFs.
- Institutional investors frequently acquire large quantities of Bitcoin from exchanges before transferring them to secure wallets.
“We have witnessed the second biggest Bitcoin outflow from Coinbase. In a week there were 2 different two huge outflows. The first one is about 16,8K and the second one 17K. We can simply think that they are related to institutional purchase or Spot ETF.”
- Interestingly, these outflows coincided with a slump in Bitcoin’s price as Q2 kicked off, with the leading crypto asset dipping to nearly $65,000.
- This correction signifies a temporary pullback from recent highs as market participants reevaluate their strategies amidst evolving market conditions.
- Meanwhile, spot Bitcoin ETF flows flipped negative on April 1 after a brief recovery, primarily due to the large outflow of nearly $303 million from Grayscale’s GBTC.
- Two leading funds – BlackRock’s IBIT and Fidelity’s FBTC – managed to attract $166 million and $44 million in inflows, respectively. However, the figures still proved insufficient to counter the outflow from GBTC.
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