Bitcoin Outflows on Coinbase Suggest Institutions Are Buying the Dip
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Around 13,000 Bitcoin was withdrawn from Coinbase yesterday and moved to multiple custody wallets, according to data from Cryptoquant.
This indicates that institutional investors are buying Bitcoin just below the $50,000 mark. It also suggests that they were neither deterred by the higher prices nor by the recent 10% dip.
The Bitcoin was transferred from a total of seven different Coinbase Pro (the firm’s institutional exchange) wallets. The largest withdrawal was for a total of 2,768 BTC, and the smallest withdrawal for a total of 579 BTC, worth $139 million and $29 million respectively.
Cryptoquant CEO Ki Young Ju said that it appeared likely that the funds went to several Coinbase custody wallets. He added, “This is the strongest bullish signal I’ve ever seen.”
This is the first time that such large outflows have been seen at these higher prices. The last two times large withdrawals like this occurred on Coinbase were on January 31, and February 5, 2021. On those dates, Bitcoin’s price was $33,000 and $37,000 respectively.
Bitcoin’s institutional investors remain as bullish as ever on the long term future of the cryptocurrency. On February 8, Tesla announced a $1.5 billion investment in Bitcoin, which then went on to break an all-time high.
Earlier this week, MicroStrategy continued its seemingly never ending stockpiling of Bitcoin, announcing a further $1 billion purchase of the cryptocurrency. The firm now holds about $4.5 billion worth of Bitcoin in total.
“Bitcoin is standing on the precipice of becoming a consensus play for public companies to hold it on their balance sheets,” Moskovski Capital CEO Lex Moskovski told Decrypt. “This trend has been started by Microstrategy, Tesla, and Square but we still need two or three companies to validate it.”
He added, “This withdrawal can potentially belong to one of these corporations, which will be huge.”
