Recent Bitcoin BTC outflows from Coinbase are reminiscent of the proofofkeys days and could be a sign of a bullish future, according to CryptoQuant CEO Ki Young Ju. Data from the cryptocurrency analysis firm shows that more than 15,200 BTC, currently worth over 515 million, were withdrawn from Coinbase on Jan. 31.
According to Ki Young Ju, the withdrawal went to custody wallets that only have ingoing transactions, and was likely an OTC deal from institutional investors based on several identifiers. He also pointed to the fact that the split of a 15,000 BTC wallet into wallets containing 1,0005,000 BTC increases security costs. Furthermore, most of the internal transfers are done with round amounts, like 1,000 to 5,000 Bitcoin, while this transfer included odd groupings of 1,265, 2,391, and 1,957 BTC.
As to why Coinbase outflows are a bullish sign for the top cryptocurrency, Ki Young Ju linked to a previous tweet from Dec. 18 which states that if Coinbase moves a significant amount of Bitcoins to other cold wallets, it indicates OTC deals which are nonexchange transactions.
He said Since the price is eventually determined on exchanges, massive nonexchange transaction volume is considered as a bullish signal. These transactions include OTC deals.
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