Encouraging signs for Bitcoin? 48k BTC Leaves Coinbase Wallets
Bitcoin on-chain data shows that a total of 48k BTC has been withdrawn from crypto exchange Coinbase’s wallets over the past 24 hours, a sign that could be bullish for the price of the crypto.
Bitcoin used withdrawal Age band suggests withdrawal was 3-5 years old
As pointed out by a post from research firm CryptoQuant, nearly $1 billion in coins left Coinbase wallets in the last day.
In general, major Bitcoin exchanges can turn out to be bullish for the value of the crypto, as investors usually withdraw their coins from centralized exchanges for accumulation purposes.
Since the offer on exchanges usually denotes the offer for sale of BTC, a decrease in it can naturally have a positive impact on the price.
Coinbase, the exchange in question here, is popularly known to be used by investors in the US, and especially by large institutions.
Since these latest Coinbase payouts were quite large, measuring around 48k in total, they may have been due to another purchase from an institutional entity.
CryptoQuant found further evidence that this was the case, noting “due to how these transactions were set up, it is likely that these coins were going to a new custodian bank for a customer who was likely an institutional entity.”
The Bitcoin Spent Output Age Bands metric tells us which groups in the market have recently transacted on the chain. Here is a chart showing the trend in this indicator for the 3-5 year group in particular:
The value of the metric seems to have spiked up during the last twenty-four hours | Source: CryptoQuant
The Bitcoin “age bands” here are classified based on the total time the member coins of the group have been dormant. For example, if a coin has been idle in the chain since between 5 and 7 years ago, it will be included in the 5y-7y group.
And when this coin finally moves to another address, the peak for it will appear in the BTC Spent Output Age Bands chart under that band.
As you can see in the graph above, ages 3-5 saw activity over the last day or so, with the number of coins being moved on a scale similar to the Coinbase expirations, suggesting that the coins withdrawn there had been frozen for between 3 and 5 years until now.
BTC price
At the time of writing, Bitcoin’s price is hovering around $19.1k, up 1% in the last week.
Looks like BTC is still stuck in the consolidation range | Source: BTCUSD on TradingView
Featured image from Shubhendu Mohanty on Unsplash.com, charts from TradingView.com, CryptoQuant.com
