Around 48,000 Bitcoin were taken out of the reputable cryptocurrency exchange Coinbase this week and were moved into cold wallets. The move was highlighted by a researcher from the CryptoQuant, who also mentioned that most of these BTC were stored on Coinbase Pro for over three years.
It is the largest Bitcoin withdrawal we have witnessed in the past four months. The last time we saw a withdrawal of this magnitude was during June this year when the market crashed.
Moving these many Bitcoins into cold wallets can also be a positive sign for price action. When the crypto flows out, it usually means that the owners have changed their minds about selling and want to hold on to the asset a little longer.
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Whales Continue to Accumulate During Sideways Market
The total amount of Bitcoin that was taken out from Coinbase was around $0.94 billion. It was taken out in three different batches of 4,560 BTC, 11,280 BTC, and 32,000 BTC.
According to CryptoQuant’s research approx. 66% of the Bitcoin transferred was stored on the platform for three to five years. However, it is still not confirmed whether those Bitcoins were moved to a new wallet or a wallet within the exchange.
The correlation between crypto and stocks is still high despite the improvement from the last month. Factors like major economic reports and central bank policy are still affecting BTC greatly. However, market watchers are surprised by the lack of volatility in the past few weeks.
Since the start of last year, we have also seen more whales accumulating Bitcoin. The number of wallets holding more than 10,000 BTC has skyrocketed in this period. However, the percentage of wallets holding 100 to 10,000 Bitcoin has decreased significantly.
If the whales continue to accumulate this way, we might not even worse crash for Bitcoin in the coming months.
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