Coinbase Records $1.1 Billion Bitcoin Outflow as Whales Eye Long-Term Gains

Coinbase saw a record 10,756 BTC outflow worth $1.1 billion in one hour, led by institutional investors buying the dip. This trend signals potential bullish sentiment amidst market volatility.

Crypto exchange Coinbase recorded an unprecedented outflow of 10,756 Bitcoin (BTC) within a single hour last week, amounting to approximately $1.1 billion in value. The event, driven largely by crypto whales and institutional investors, has sparked optimism in the market, signaling a possible bullish trend.

According to CryptoQuant analysts, the massive outflows came in two blocks: the first containing 8,093 BTC, and the second holding 2,557 BTC. The withdrawals followed the U.S. Federal Reserve’s recent decision to cut interest rates by 25 basis points, which is widely viewed as a catalyst for increased investments in riskier assets like cryptocurrencies.

Such significant outflows from centralized exchanges like Coinbase often indicate a shift in sentiment, with investors opting for long-term holdings in cold wallets rather than keeping their assets on exchanges. In contrast, inflows to exchanges tend to signal sell pressure, as investors prepare to liquidate holdings.

Institutional investors have led the recent wave of Bitcoin purchases, taking advantage of a market dip caused by retail holders offloading assets to secure short-term profits. These larger players appear to be betting on favorable macroeconomic trends in the United States, including slowing inflation and further rate cuts, which could drive another rally for Bitcoin and other digital assets.

On December 18, the Federal Reserve lowered its policy rate by 25 basis points to levels unseen since February 2023. This move, combined with an improved inflation outlook, has created a more attractive environment for speculative investments, further fueling interest in cryptocurrencies.

At present, Bitcoin’s price shows resilience, supported by growing demand from both institutional players and long-term retail investors. As the market adjusts to these new dynamics, analysts remain cautiously optimistic about Bitcoin’s trajectory heading into 2024.

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