Bitcoin bulls are anticipating another price uptick following outflows from cryptocurrency exchanges to other custodians. This shows an upward market trend as several investors look to consolidate on accumulated gains in recent months.
New market data from on-chain analytics firm CryptoQuant shows huge outflows from digital asset exchange Coinbase this week opening up new projections from crypto users across social media spaces. The first transaction shows 16,800 BTC out of the exchange while the second totaled 17,000 BTC.
According to analysts Burakkesmeci, the exits could represent an institutional purchase or could be directed at spot Bitcoin ETFs. Either way, several crypto users have hinted at the bullish sequence in the Bitcoin market.
“We have witnessed the second biggest Bitcoin outflow from Coinbase. In a week, there were two different huge outflows. The first one is about 16.8k and the second one 17k. We can simply think that they are related to institutive purchase or spot ETF.”
Traditionally, when assets leave a centralized crypto exchange, it shows a bullish sentiment as those coins cannot be easily sold. On the other hand, the flow of assets to exchanges shows an imminent sale of the asset which occurs after periods of price hikes to make a profit.
The surge in Bitcoin and other crypto assets has led to investors and traders taking new positions pushing coins to highs not recorded in years. Bitcoin soared above $70,000 before making a slight correction amid a similar rise in altcoins and the memecoin market.
Several market watchers point to the heightened activity due to the upcoming halving which will slash the reward for mining the asset. Although seen as a bullish activity, the weeks leading up to the halving show some miners hedging some assets to reposition. Notably, miners look to improve production capacity and scramble for new hardware.
In a related development, it was reported that a flow of $1.4 billion worth of USDC to Coinbase pointed to buying pressure because stablecoins can be used to acquire other cryptocurrency assets.
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