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Learning & News => News related to Crypto => Topic started by: sirty143 on June 12, 2024, 02:06:12 PM

Title: $2.7 Billion Reduction — Coinbase Records 40,406 BTC Outflow in 60-Day Period
Post by: sirty143 on June 12, 2024, 02:06:12 PM

$2.7 Billion Reduction — Coinbase Records 40,406 BTC Outflow in 60-Day Period

In recent weeks, Binance and Robinhood observed a modest influx of approximately 1,302 BTC or $88 million in bitcoin, with Robinhood acquiring the majority of these assets. Conversely, Coinbase experienced a noticeable decrease in its bitcoin reserves... See more for yourself here (https://news.bitcoin.com/2-7-billion-reduction-coinbase-records-40406-btc-outflow-in-60-day-period/).

Your opinion is greatly appreciated.

Title: Re: $2.7 Billion Reduction — Coinbase Records 40,406 BTC Outflow in 60-Day Period
Post by: NotATether on June 13, 2024, 02:02:31 PM

That may have something to do with the fact that each exchange has a different class of users:

- Coinbase serves mostly institutional investors
- Robinhood has all of the crazy risky traders on their platform
- Binance takes pretty much (almost) everyone else

So the fact that Coinbase had the largest BTC outflows is not surprising, given that the institutional investors have huge bags of money, which they can sell at once if they want to.

Title: Re: $2.7 Billion Reduction — Coinbase Records 40,406 BTC Outflow in 60-Day Period
Post by: Faisal2202 on June 14, 2024, 10:20:14 PM

So we can't say this outflow amount inflows into Binance or Robinhood exchanges as the news says overall Centralized exchanges have lost almost 76,883 BTC and out of these 40,406 BTC has been withdrawn from the Coinbase itself. So I think all of these BTC are either traded via OTC platforms or off-chain. Or they have been stored in Cold wallets for long-term holding.

Overall analysts say it's a good thing, as BTC flowing out of the CEXs means the owners don't want to use this BTC in trading or swapping into other tokens. Which means they are going to hold onto these funds and which will shortern the supply and demand is already increasing so it will put a good impact on the price of BTC.

Title: Re: $2.7 Billion Reduction — Coinbase Records 40,406 BTC Outflow in 60-Day Period
Post by: Stompix on June 14, 2024, 10:33:40 PM

Quote from: NotATether on June 13, 2024, 02:02:31 PM

So the fact that Coinbase had the largest BTC outflows is not surprising, given that the institutional investors have huge bags of money, which they can sell at once if they want to.

I checked the source of that:
https://platform.arkhamintelligence.com/explorer/entity/coinbase
A pain in the ass to browse around and take a serious time to load but just filtering large withdrawals seems like over 10BTC outflows are a minority, so unless Coinbase is breaking large transactions in small chunks its small users who tend to cash out.

There are expectations, of course, the latest would be things like this:
https://mempool.space/address/18HMhPABS67AUngkNMT9eAa15m92ddVFKm
https://mempool.space/address/1GqfUmjpyMmUq61wNAdkKXA2CK5AwmXpwt
so at least some of the big guys are cashing out and not moving their coins at all (maybe cold storage) ?