Analytics / Forex and Crypto News
In recent days, the Coinbase crypto exchange has been recording significant amounts of Bitcoin withdrawals. CryptoQuant CEO Ki Yong Joo believes that significant Bitcoin withdrawals from the crypto exchange could be a strong bullish signal.
According to a CryptoQuant report, 15,200 BTC, worth almost $500 million, were withdrawn over Coinbase yesterday. Bitcoins move in transactions from 1,100 BTC ($35 million) to 4,400 BTC ($150 million). These can be transactions between different wallets of the exchange itself, however, there is usually no reason to split large wallets into smaller ones.
CryptoQuant CEO Ki Yong Joo links Bitcoin withdrawals to large over-the-counter (OTC) transactions between institutional players. In addition, Coinbase's custodian service is integrated with its OTC marketplace, further indicating that these transactions are OTC transactions.
From the Coinbase exchange, Bitcoins are transferred to wallets that have only incoming transactions and no outgoing ones. Most likely, these wallets are used to store Bitcoins by institutional investors. This could be a strong bullish signal.