The on-chain analytics company CryptoQuant reports that there has been a massive 17,000 BTC outflow from the Coinbase cryptocurrency exchange. This is the second-largest withdrawal in a week where the price of bitcoin has fluctuated a lot.
Coinbase had two significant withdrawals this week, totaling 16,800 and 17,000 Bitcoin, according to CryptoQuant. It makes the assumption that spot ETFs or institutional buying may be to blame for this.
These significant outflows might be caused by a number of factors, including institutional buying. Institutional interest in Bitcoin has increased since the Spot ETF was introduced. Typically, these investors buy massive quantities of Bitcoin on exchanges and move them to wallets.
https://x.com/cryptoquant_com/status/1775070240084259275?s=20
The significant withdrawals were accompanied by a sharp decline in the price of Bitcoin, which brought its worth down to over $65,000. This change in price indicates a cooling off from recent highs as traders and investors reevaluate their holdings in the cryptocurrency market.
With the market processing this significant withdrawal, all eyes will be on the price of Bitcoin and Coinbase’s next moves. We don’t know what will happen following Coinbase’s huge withdrawals.
Bitcoin price dips
The first and biggest cryptocurrency by market capitalization, Bitcoin, crashed due to dwindling expectations for more accommodative Federal Reserve monetary policy and a decline in the market for certain U.S. exchange-traded funds.
Before partially rebounding from its losses, the digital asset dropped as much as 7%, momentarily hitting a low of $65,050 for the first time since March 24.
As of this writing, Bitcoin has dropped 5.55% in the previous day to $65,704.
As investors lower their expectations on Fed interest rate reductions due to pressure on US prices, Treasury rates and the dollar rise, and the dramatic boom in cryptocurrency this year appears to be waning.
Since hitting a peak of $73,798 in mid-March, the price of bitcoin has decreased by about 10%. The 10 ETFs, which have raised over $12 billion since their inception on January 11, had a net withdrawal of $86 million from investors on Monday.
