CryptoQuant lead analyst Ki Young Ju drew attention to the fact that many market participants began to withdraw bitcoins from their exchange wallets.
In just one day, more than $ 500 million in bitcoins were withdrawn from Coinbase. The Whale Alert service recorded the withdrawal of about 15,000 BTC from the Coinbase cryptocurrency exchange. According to the columnist Blockchair, the owners have distributed bitcoins among 100 wallets at 147.8 BTC.
CEO of CryptoQuant wrote about bitcoins withdrawal from Coinbase. It moved into wallets for incoming transactions, and no one knows who owns these wallets. Ju suggested that this could be the result of large off-exchange transactions.
Thus, institutional traders buy or sell large amounts of digital assets in order not to create unnecessary fluctuations in the market. However, these transactions can still affect the bitcoin rate. Markets tend to find balance. When the supply of an asset shrinks and demand from retail investors remains unchanged, off-exchange transactions can lead to an increase in the Bitcoin price, albeit with a delay. However, these transactions could simply be a reallocation of assets within the Coinbase infrastructure.
Although Alistair Milne, CIO at Altana Digital Currency Fund, writes that it wasn’t only Coinbase users who were withdrawing bitcoins. According to him, Huobi’s clients withdrew 1,079 BTC, Binance – 2,650 BTC, and OKEx – 3,610 BTC. Thus, about 21,000 BTC left the exchange accounts.
Large investors are behind the bitcoins withdrawal
The cryptocurrency community has suggested that large investors may be behind the transactions. Since recently, large companies are increasingly investing in bitcoin. Guggenheim Partners announced its intention to allocate more than $ 500 million to invest in the Grayscale Bitcoin Trust.
Therefore, the demand for this crypto asset stimulated not only by the statements of Tesla CEO Elon Musk that he became a supporter of the first cryptocurrency, but also by the actions of large companies.