Cryptocurrency news

15,200 BTC was withdrawn from the Coinbase Pro exchange in one day

15,200 BTC was withdrawn from the Coinbase Pro exchange in one day

According to CryptoQuant, on January 31, 15,200 BTC were withdrawn from the Coinbase Pro cryptocurrency exchange. This may be the result of large over-the-counter transactions.

Analysts reported that in just one day, more than $500 million worth of bitcoins were withdrawn from Coinbase Pro. The CEO of CryptoQuant, Ki Young Ju, wrote that bitcoins have moved to wallets that are characterized by incoming transactions. Transactions ranged from 1,100 BTC ($35 million) to 4,400 BTC ($150 million). Ju suggested that this is due to large transactions made by institutional investors on over-the-counter (OTC) trading platforms. Given that Coinbase’s custodial service is integrated with OTC platforms, this confirms Ju’s hunch about over-the-counter activity.

The head of CryptoQuant called this situation “the most bullish signal” for bitcoin. Institutional traders use OTC platforms to buy or sell large amounts of digital assets, so as not to create unnecessary fluctuations in the market. However, these transactions can still affect the bitcoin exchange rate. The markets have a tendency to find a balance. When the supply of an asset is reduced, and the demand from retail investors remains unchanged, over-the-counter transactions can lead to the growth of bitcoin, albeit with a delay. However, these transactions may simply be a reallocation of assets within the Coinbase infrastructure.

Recently, large companies are increasingly investing in bitcoin. For example, in November, Guggenheim Partners announced its intention to allocate more than $500 million to invest in the Grayscale Bitcoin Trust. Meanwhile, BlockFi has filed an application with the US Securities and Exchange Commission (SEC) to register a similar trust for bitcoin. Therefore, the demand for this crypto asset is 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.