A total of 140 billion yen worth of Bitcoin was withdrawn from U.S. Coinbase, perhaps selling pressure is decreasing?

9 months ago 83

Bitcoin bulk withdrawal

It has been revealed that a total of 140 billion yen worth of Bitcoin (BTC) was withdrawn from Coinbase, a major US crypto asset (virtual currency) exchange.

Withdrawal information was released by data provider “CryptoQuant” on the 20th. In terms of Bitcoin quantity, a total of over 18,000 BTC has been withdrawn, and the Bitcoin reserve that can be checked on Coinbase has decreased to its lowest level since 2017.

Although on-chain data is not always accurate, large withdrawals like this one are closely related to supply and demand, so they are attracting a lot of attention from investors. The reason for the withdrawal is not clear, but CryptoQuant tracks the withdrawal.

Bitcoins withdrawn from Coinbase were split up and sent to multiple new wallets. CryptoQuant explained that the Bitcoins sent to each wallet were worth between $45 million (6.7 billion yen) and $170 million (25.6 billion yen) each.

With this withdrawal, the amount of Bitcoin on Coinbase's general order book (trading board) has decreased to approximately 394,000 BTC (equivalent to 3 trillion yen).

connection：Bitcoin and Ethereum futures markets are struggling at the $50,000 level, and there is a feeling of overheating

Analysis of withdrawal reasons

CryptoQuant CEO Ki Young Ju also posted the withdrawal details on his X account individually on the 20th. At that time, he explained that the funds were withdrawn to multiple addresses that were not exchanges, and pointed out that the destination of the funds was likely a custodial wallet.

18K $BTC moved from Coinbase to multiple non-exchange addresses, likely custodial wallets.https://t.co/QR5QYBnoez pic.twitter.com/s1b9tSx7qj

— Ki Young Ju (@ki_young_ju) February 20, 2024

What is a custody wallet?

A wallet that you use to manage your own private keys and hold assets, rather than an exchange. Sometimes referred to as a “self-hosted wallet” or “self-managed wallet.”

Virtual currency glossary

Large withdrawals from exchanges are generally thought to be caused by virtual currency owners moving their funds to custody wallets with an eye on medium- to long-term holding, and many believe this leads to a decline in selling pressure. It is believed that investors, anticipating future price increases, withdrew their funds to hold them in cold wallets instead of selling them immediately.

On the other hand, after this withdrawal, some people pointed out that “the money may have been withdrawn for OTC trading'' and “the money may have been sent to another custodian.'' The reason for the withdrawal is unclear. It is.

What is OTC trading?

Refers to a one-on-one transaction between a seller and a buyer. “OTC” is an abbreviation for “Over The Counter.”

Virtual currency glossary

In April, Bitcoin will reach its halving period, when mining rewards (=newly issued amount) will be cut in half.

connection: “This Bitcoin halving is different from the last time” Grayscale analysis