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Recent Bitcoin (BTC) outflows from Coinbase are reminiscent of the “proof-of-keysDays and can be a sign of one bullish future, according to CryptoQuant CEO Ki Young Ju.

Data from the cryptocurrency analytics firm shows that more than 15,200 BTC, currently worth more than $ 515 million, was withdrawn from Coinbase on January 31.

BTC outflows from Coinbase. Source: CryptoQuant

According to Ki Young Ju, the inclusion “went to custodial portfolios that only have pending transactions” and was likely an “OTC deal from institutional investors” based on various identifiers.

He also pointed out that splitting a 15,000 BTC wallet into wallets with 1,000-5,000 BTC increases security costs. In addition, most internal transfers are done with round amounts, such as 1,000 to 5,000 Bitcoin, while this transfer included odd groups of 1,265, 2,391 and 1,957 BTC.

As to why Coinbase outflows are a bullish sign for the best cryptocurrency, Ki Young Ju has been linked to a previous tweet of December 18 stating that “if Coinbase moves a significant number of Bitcoins to other cold wallets, it indicates OTC deals” that are non-exchange transactions.

He said:

“Since the price is ultimately determined on exchanges, the huge transaction volume without an exchange is seen as a bullish signal. These transactions include OTC deals. ”

BTC / USDT 4-hour chart. Source: TradingView

The slow influx of institutions into the cryptocurrency sector is helping with that increase legitimacy of the crypto sector as a whole and appears to provide some level of support for the price of BTC as the available supply is still locked in cold custody wallets.

While the media pointed to Bitcoin’s price drop from $ 42,000 to less than $ 30,000 as a sign that the BTC bubble had burst again, purchase of 4,000 BTC indicates on Feb. 1 that institutions have instead seen this as an opportunity to buy the dip and take full advantage of this buying opportunity.