Uplifting Sign For Bitcoin? 48k BTC Leaves Coinbase Wallets
Bitcoin on-chain data shows a total of 48k BTC have been withdrawn from crypto exchange Coinbase’s wallets during the past day, a sign that could be bullish for the price of the crypto.
Bitcoin Spent Output Age Bands Suggest Withdrawals Were Of 3-5yr Old Supply
As pointed out by a post from the analytics firm CryptoQuant, almost $1 billion worth of coins exited Coinbase wallets in the last day.
Generally, large Bitcoin exchange outflows can prove to be bullish for the value of the crypto as investors usually withdraw their coins from centralized exchanges for accumulation purposes.
Since the supply on exchanges usually denotes the selling supply of BTC, a decrease in it can naturally have a positive impact on the price.
Coinbase, the exchange in question here, is popularly known to be used by investors in the US, and especially by large institutionals.
As these latest Coinbase outflows were pretty large, measuring around 48k in all, they could have been due to a fresh purchase from an institutional entity.
CryptoQuant found further evidence of this being so, noting “because of how these transactions were set up, it’s probable that these coins were going to a new custodian wallet for a customer who was likely an institutional entity.”
The Bitcoin Spent Output Age Bands metric tells us which groups in the market have been making transactions on the chain recently. Here is a chart showing the trend in this indicator for specifically the 3y-5y group:
The value of the metric seems to have spiked up during the last twenty-four hours | Source: CryptoQuant
The Bitcoin “age bands” here are classified based on the total amount of time the member coins of the group have been sitting dormant for. For example, if a coin has been sitting still on the chain since between 5 and 7 years ago, it would be included in the 5y-7y group.
And when this coin would finally move to another address, the spike for it will show up in the BTC Spent Output Age Bands chart under the particular band.
As you can see in the above graph, the 3y-5y age band registered activity during the last day or so, with the number of coins moved being on the scale similar to the Coinbase outflows, suggesting the coins withdrawn there had been frozen for between 3 and 5 years until now.
At the time of writing, Bitcoin’s price floats around $19.1k, up 1% in the past week.
Looks like BTC is still stuck in the consolidation range | Source: BTCUSD on TradingView
Featured image from Shubhendu Mohanty on Unsplash.com, charts from TradingView.com, CryptoQuant.com