$1.2B Worth Of Bitcoin Transferred Out Of Coinbase Indicating Continued AdoptionMarch 18, 2022 12:08 pm
In a sign of continuous crypto adoption and Bitcoin’s increasing role as a store of wealth, it was recently recorded that $1.2B worth of Bitcoin has been transferred offline from Coinbase.
This is happening during a downward decline in the overall crypto markets which has persisted since the start of the year.
Much of this can be attributed to financial institutions still stockpiling digital assets possibly as an alternative storage of wealth as well as increasing inflation concerns which continues to become more concerning as time goes on.
Coinbase is a US based crypto exchange which represents a significant portion of overall trading volume and is a good indicator of asset flows within the US.
The recent large outflow of coins from the U.S.-based crypto exchange Coinbase is evident, according to blockchain analytics firm Glassnode.
The recent highly volatile markets have sent bitcoin prices tumbling, with a total of 31,130 bitcoin leaving Coinbase last week. This is the highest single-week outflow since 2017, data tracked by Glassnode.
In a weekly newsletter published Monday, Glassnode said;
Large outflows like this one are actually part of a consistent trend in the Coinbase balance, which has been stair-stepping downwards over the last two years.
As the largest exchange by BTC balance, and a preferred venue for U.S.-based institutions, this further supports the adoption of bitcoin as a macro asset by larger institutions.
In the past few weeks, the overall markets have still had lower overall volume and activity when compared to the same time last year.
With that being said, some may see the recent large amount of withdrawals from the exchanges to offline wallets as a positive outlook for future price.
Glassnode states that the majority of withdrawals seem to be happening with no intention of ever being utilized or spent meaning that the digital assets are starting to be considered an alternative option to store wealth like “digital gold”.
In fact, the data suggests that this is probably overwhelmingly the case given that the amount stored on illiquid wallets is actually three times as much as liquid wallets.
This trend has continued for the past few years without any regard to whether it was a bull or bear market which may show the larger strategic vision of how institutions are treating digital assets like Bitcoin.
A total of 31,130 bitcoin left Coinbase last week, the highest single-week outflow since 2017, data tracked by Glassnode shows.
“Large outflows like this one are actually part of a consistent trend in the Coinbase balance, which has been stair-stepping downwards over the last two years,” Glassnode said in a weekly newsletter published Monday. ”
As the largest exchange by BTC balance, and a preferred venue for U.S. based institutions, this further supports the adoption of bitcoin as a macro asset by larger institutions.”
The past week’s outflow has pushed the number of coins held on the Nasdaq-listed exchange to a four-year low of 649,500 BTC.
The balance held across all centralized exchanges has dropped to 2,519,403 BTC, the lowest number since November 2018.
At the time of writing, Bitcoin is currently priced at roughly $41k and is in the middle of a mild correction from the overall downward trend.
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