In a significant development, Bitcoin holdings on the Coinbase crypto exchange have plummeted to their lowest levels in nine years as users transfer a substantial portion of their holdings off the platform.
According to a report from CryptoQuant, whales have orchestrated a mass exodus of Bitcoin from Coinbase, with a staggering 18,000 BTC worth nearly $1 billion being moved off the exchange over the weekend. Transfer values ranged from $45 million to $171 million, significantly depleting Coinbase’s public order book, which now holds around 394,000 BTC, estimated to be worth $20.5 billion.
The movement of BTC away from centralized exchanges is interpreted by some as a bullish signal, indicating that less Bitcoin is available for sale. However, opinions on social media are divided. Some speculate that funds are being shifted to custodial wallets in anticipation of a price surge, particularly with the Bitcoin halving just two months away, which could create a supply shock. Others suggest that the transferred funds might be earmarked for liquidity for over-the-counter (OTC) trades or may be going to a different custodian.
Every Bitcoin halving cycle reduces the amount of new BTC entering the market by half, intensifying supply constraints as demand escalates. The upcoming halving in April, reducing the block reward from 6.25 BTC to 3.125 BTC, is poised to exacerbate this dynamic. Coupled with institutional demand, exemplified by the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the US in January, the stage is set for heightened scarcity.
Despite a recent pullback from its all-time high, Bitcoin continues to trade around $52,000, reflecting a resilient bullish sentiment. With institutional demand remaining robust and supply set to dwindle further post-halving, Bitcoin’s long-term trajectory appears promising.
As the crypto market navigates through volatile waters, the latest developments underscore the enduring allure of Bitcoin as a store of value and its potential to reshape the financial landscape.
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