March 27, 2024
Coinbase Sees Lowest BTC Holdings Since 2015
Bitcoin News

Coinbase Sees Lowest Bitcoin Holdings Since 2015

Bitcoin holdings on the Coinbase cryptocurrency exchange have recently reached their lowest level in nine years as users opt to transfer a substantial portion of their assets off the platform. According to a report from CryptoQuant, significant players, often referred to as whales, withdrew approximately 18,000 Bitcoin (BTC) worth nearly $1 billion from Coinbase over the weekend.

The transfer values varied between $45 million and $171 million. As a result, Coinbase’s public order book now retains around 394,000 BTC, estimated to be valued at $20.5 billion. The movement of BTC away from centralized exchanges by whales is generally interpreted as a bullish sign, indicating a decrease in the amount of Bitcoin available for sale. However, opinions on social media are divided regarding the nature of these transfers.

Some believe that the funds are being relocated to custodial wallets in anticipation of a potential price surge, especially with the upcoming Bitcoin halving just two months away, creating a supply shock. On the other hand, some suggest that the moved funds might be earmarked for liquidity in over-the-counter (OTC) trades. There is also speculation that the funds could be transitioning to a different custodian, and the transfers may not be individual withdrawals.

Some argue that most of the assets on exchanges don’t belong to the exchanges themselves, so the reported number might be lower than expected. With each Bitcoin halving cycle, the influx of new BTC into the market is halved, leading to a supply shortage as demand continues to grow. The next BTC halving is scheduled for April at a block height of 740,000, where the block reward for miners will decrease from 6.25 BTC to 3.125 BTC. This event is occurring amidst substantial institutional demand, evidenced by the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States in January.

Presently, approximately 900 BTC is mined daily, while Bitcoin ETFs experience daily net inflows of around half a billion dollars or approximately 9,650 BTC, despite Grayscale reporting nearly $100 million in daily outflows. After the April halving, BTC’s daily production will decrease to around 450 BTC, while institutional demand rises. Historically, this supply-demand gap has frequently driven Bitcoin to new all-time highs within a year of the halving. As of now, Bitcoin is trading at around $52,000, reaching its highest level since December 2021, although it is down 25% from its peak of approximately $69,000.

Image by Flickr

Related posts

Bitcoin Slips 2% to Drop Below $30K; Altcoins Follow Suit

Cheryl  Lee

TorogozDev Launches Lightning Node in El Salvador, Bolstering Bitcoin Network

Christian Green

Bitcoin Surges to $30K, Then Drops Amid False Spot ETF Approval Report

Kevin Wilson

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More