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In an unexpected development, Coinbase’s Wrapped Bitcoin (WBTC) has seen a staggering 6,887% surge in large transaction volume, sparking attention in the crypto community.
On-chain data shows that whale activity involving Coinbase Wrapped Bitcoin has skyrocketed in the last 24 hours, indicating increased movement or interest in the asset.
According to IntoTheBlock data, large transaction volume for Coinbase Wrapped BTC, CbBTC, increased by 6,887% to $14.42 billion. A spike in large transaction volume often denotes increased activity for whales or large holders, whether buying or selling.
While the reason for the sudden spike remains unclear, such an unusual jump suggests a large-scale transfer or a rapid change in market dynamics.
Coinbase allows eligible customers to send or receive wrapped versions of certain cryptocurrencies to wallet addresses on supported blockchains, enabling them to transact across various networks while maintaining a single, unified balance of the native tokens in their Coinbase accounts. Each wrapped asset is backed 1:1 by its original cryptocurrency. Coinbase Wrapped Bitcoin (cbBTC) represents Bitcoin (BTC) on Base, Ethereum, Solana and Arbitrum.
Bitcoin institutional demand booms
The surge in Coinbase's wrapped Bitcoin large transaction volume comes as Bitcoin's gain slows, with momentum moderating across spot, futures, options and ETF markets. With liquidity dwindling and risk appetite cooling, signs of seller exhaustion emerge, but BTC's frail market structure leaves it vulnerable to further decline.
Bitcoin, the world's largest cryptocurrency by market value, is seeing an increase in demand from institutional investors, as pension funds and other long-term buyers add it to their portfolios.
The crypto sector is anticipating an executive order that will enable private equity, real estate, cryptocurrency and other alternative assets in 401(k)s, a significant triumph for companies hoping to get into the nearly $12.5 trillion held in those retirement plans.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team