Coinbase Witnesses Lowest Bitcoin Holdings Since 2015 as Whales Withdraw 1 Billion Dollars in BTC

Crypto News– Bitcoin holdings on the Coinbase cryptocurrency exchange have plummeted to their lowest level in nine years as users transfer a significant portion of their assets off the platform.

Coinbase Witnesses Lowest Bitcoin Holdings Since 2015 as Whales Withdraw 1 Billion Dollars in BTC

According to a report from CryptoQuant, whales—large holders of Bitcoin—have shifted 18,000 BTC worth nearly $1 billion from Coinbase over the weekend, with individual transfers ranging from $45 million to $171 million. As a result, Coinbase’s public order book currently contains approximately 394,000 BTC, valued at an estimated $20.5 billion. This exodus of BTC from centralized exchanges by whales is generally interpreted as a bullish signal, indicating decreased availability for sale.

However, opinions on social media are divided regarding the motives behind these transfers. Some speculate that these funds are being moved to custodial wallets in anticipation of an impending price surge, particularly with the Bitcoin halving approaching in just two months, potentially causing a supply shock. Others suggest that the transferred funds might be earmarked for liquidity purposes in over-the-counter (OTC) trades.

Others have suggested that the transferred funds might be directed to a different custodian, implying that these withdrawals aren’t individual in nature. They argue that a significant portion of the assets held on these exchanges doesn’t actually belong to them, suggesting that the reported number should be considerably lower.

With each Bitcoin halving cycle, the influx of new BTC into the market is halved, leading to a supply crunch as demand continues to rise. The upcoming BTC halving is scheduled for April, set to occur at a block height of 740,000. Following this event, the block reward for miners will be slashed from 6.25 BTC to 3.125 BTC per block. This impending halving coincides with substantial institutional interest, exemplified by the approval of 11 spot Bitcoin exchange-traded funds (ETFs) in the United States in January.