Coinbase Sells $1.2 Billion Worth Of Bitcoin In A Week
Large institutional investors are gaining confidence in the crypto industry and are investing millions of dollars in the asset class. For years, some of the world’s biggest and most well-known financial institutions have worked to build the infrastructure that underpins cryptocurrencies.
Institutions are actively involved, as proven by the huge Coinbase outflows. The crypto market’s prolonged whipsawing seems to have frightened away regular investors. On the other hand, institutional investors tend to have a long-term perspective; they are not concerned with short-term profits.
According to statistics given by on-chain analytics company Glassnode, this is accurate. Specifically, within the last week, an eye-popping 31,130 bitcoin – worth almost $1.2 billion — were removed from the Coinbase exchange. This is the greatest net outflow since the start of the year. This is a sign that investors now see BTC as a legitimate investment asset.
The massive rush has resulted in a significant fall in the overall amount of bitcoin stored on the San Francisco-based exchange, which now stands at about 650,000 BTC. This is the same level as at the 2017 bull run’s zenith. Additionally, Coinbase’s overall bitcoin holdings have fallen 36.6 percent from their April 2020 record high.
Additionally, the Glassnode analysis adds that these significant outflows are consistent with Coinbase’s balance. Additionally, being the largest publicly listed exchange in the United States and the largest cryptocurrency exchange in terms of bitcoin reserves, this bolsters the argument that bitcoin is being accepted as a micro asset by large institutional customers.
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The Illiquid Supply Shock Ratio (ISSR) has increased significantly in the last week. This signifies that the reallocated coins have been transferred to wallets with no spending history.
The cryptocurrency market has been very volatile in recent months, with the price of the benchmark cryptocurrency falling from a lifetime high of $69K in November to almost half that level in less than four months, generating an increase in anxiety, uncertainty, and doubt.
Nevertheless, institutional adoption of bitcoin as a critical component of the global financial system continues to grow. As adoption of cryptocurrency accelerates and institutional players continue to engage actively in the market, the industry will continue to expand and mature.
Furthermore, any significant increase in institutional use of digital assets provides further price support for cryptocurrencies. At press time, BTC is trading at a lofty $40,532.60, up 4.47 percent in the past 24 hours.
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