So-called Bitcoin (BTC) whalesThese are investors who own a large number of Bitcoins, apparently caused quite a stir last weekend.
As a result, the amount of Bitcoin still on the Coinbase exchange, the largest crypto exchange in the US, is at its lowest level in no less than 9 years.
Almost a billion dollars in Bitcoin were withdrawn from Coinbase
According to analysts at CryptoQuant, whales took around 18,000 BTC from Coinbase over the weekend.
At a current price of around $52,000, major investors have withdrawn $936 million worth of Bitcoin from the major exchange.
18K $BTC moved from Coinbase to multiple non-exchange addresses, likely custodial wallets. pic.twitter.com/s1b9tSx7qj
— Ki Young Ju (@ki_young_ju) February 20, 2024
Julio Moreno, head of research at CryptoQuant, reports that Coinbase also saw the largest one-hour Bitcoin outflow in 2024. He writes that 18,746 BTC were moved in just two transactions during the same period block.
However, it is not clear whether the above 18,000 BTC is included.
Due to the massive withdrawals, Coinbase has “only” 394,000 BTC worth about $20.5 billion. This is the lowest amount of Bitcoin Coinbase has had since 2015.
Bitcoin Supply Shock: ETFs and Halving
If the amount of Bitcoin on an exchange falls, this is usually seen as a positive price development.
Eventually, the available supply of Bitcoin decreases. It also shows that these investors are unlikely to sell their BTC anytime soon.
Nevertheless, Moreno does comment on the large recording. According to the researcher, it is very likely that this is a sign that institutions are taking big steps. Large new wallet addresses are also emerging.
However, he admits that this could simply be an internal restructuring of Bitcoin into new wallets from Coinbase itself.
Still, investors are slowly preparing for a so-called “supply shock.” A rapid decline in supply could push the price to a new high.
The new Bitcoin ETFs have already stocked up on huge amounts of Bitcoin in the last few weeks. In addition, the next one will take place in April halving takes place, halving the issuance of new Bitcoins.