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According to on-chain analytics firm CryptoQuant, the Coinbase crypto exchange has recently witnessed a colossal outflow of 17,000 BTC. This marks the second-largest outflow in a week characterized by volatility in BTC price action.
According to CryptoQuant, Coinbase had two massive outflows this week, totaling 16,800 BTC and 17,000 BTC. It speculates that this could be due to institutional buying or spot ETFs.
There are several possible reasons for these large outflows, one of which is institutional buying. The launch of the Spot ETF has boosted institutional interest in Bitcoin. These investors generally purchase huge amounts of Bitcoin on exchanges and transfer them to wallets.
The massive outflows coincided with a notable dip in Bitcoin's price, which saw the cryptocurrency's value fall to nearly $65,000. This price movement reflects a cooling off from recent highs as investors and traders reassess their positions on the crypto market.
Tomiwabold OlajideAs the market digests this substantial outflow, all eyes will be on Bitcoin's price and Coinbase's subsequent activity. What comes next after the massive outflows from Coinbase remains unknown.
Bitcoin price dips
Bitcoin, the first and largest cryptocurrency by market capitalization, fell on falling demand for dedicated U.S. exchange-traded funds and declining wagers on looser Federal Reserve monetary policy.
The digital asset slid as much as 7%, temporarily reaching a low of $65,050 for the first time since March 24, before recovering a portion of its losses.
At the time of writing, BTC was down 5.55% in the last 24 hours to $65,704.
This year's sharp crypto surge seems to be fading as U.S. price pressures prompt investors to reduce bets on Fed interest-rate reductions, boosting Treasury rates and the dollar.
Bitcoin has fallen almost 10% since reaching a high of $73,798 in mid-March. On Monday, investors withdrew a net of $86 million from the 10 ETFs, which have raised almost $12 billion since their launch on Jan. 11.
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team