While the BTC price continues to struggle slightly above the $50,000 mark, on-chain data revealed that over 13,000 bitcoins had been moved out from Coinbase to custody wallets. CryptoQuant’s CEO believes that these withdrawals went towards institutional investors, and he categorized it as the “strongest bullish signal.”
Bullish Developments on the BTC Horizen?
BTC’s price has suffered in the past several days after the asset peaked above $58,400 for a new all-time high record. However, the bears were looming, waited for their opportunity, and plummeted the cryptocurrency to a low beneath $45,000.
Despite bouncing off somewhat rapidly following this $13,000 nosedive, bitcoin is still more than 10% down from its latest price peak. However, data provided by the monitoring company CryptoQuant suggests a more favorable short-term future for the primary cryptocurrency.
The firm’s CEO, Ki Young Ju, took it to Twitter to exemplify a substantial withdrawal from the largest US crypto exchange – Coinbase. Earlier today, nearly 13,400 bitcoins were withdrawn to “multiple Coinbase custody wallets.”
Bitcoin Withdrawn From Coinbase. Source: CryptoQuant
Consequently, he concluded that this sizeable amount worth approximately $650 million has ended up on wallets linked to US institutional investors. According to Young Ju, such investors have continued allocating funds in BTC even after the cryptocurrency lost nearly 20% of its value in a matter of days.
As institutions don’t seem deterred from buying the dip, Young Ju classified it as the “strongest bullish signal I’ve ever seen.” Keeping in mind that corporations such as Square and MicroStrategy also doubled-down on their belief in BTC with considerable allocations, the asset could indeed be heading for a sharp price recovery.
The Role of Coinbase Withdrawals for BTC’s Price
Apart from buying shares of the Grayscale Bitcoin Trust (GBTC), Coinbase is among the most preferred channels for US-based corporations and institutions to buy bitcoin. After all, the exchange facilitated at least one of MicroStrategy’s massive purchases.
Consequently, Young Ju has repeatedly outlined the vital role of large Coinbase withdrawals to custody wallets on BTC’s price. For instance, CryptoPotato reported another similar development in which 15,000 bitcoins were transferred out of the exchange in one day on February 3rd.
Upon the time of the withdrawals, bitcoin traded below $33,000. However, the cryptocurrency skyrocketed in value in the following days and less than a week later neared $50,000 for a new price record.