Bitcoin held on to the price level of $47,000 on Thursday despite the pressure of profit-taking. BTC exchange flow, an indicator that highlights the difference between the supply and demand of the world’s leading cryptocurrency on trading platforms, has seen immense volatility in the past few weeks.
Yesterday, the difference between Bitcoin exchange outflows and inflows surged substantially. According to Glassnode, a prominent on-chain analytics platform, approximately $2.1 billion worth of BTC moved away from exchanges, compared to the inflows of $1.2 billion.
Bitcoin whale movements are playing a major role in the latest surge. Whale Alert recently highlighted the movement of 2,000 Bitcoin worth more than $94 million from Coinbase to an unknown wallet. BTC balance on prominent exchanges has been plunging since the start of 2021.
Coinbase is one of the worst-hit digital exchanges in the recent trend. According to Glassnode, the BTC balance on Coinbase has declined by more than 36% since April 2020. During the second week of March 2022, crypto whale accounts moved nearly 30,000 Bitcoin away from Coinbase.
“Large outflows 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 US-based institutions, this further supports the adoption of Bitcoin as a macro asset by larger institutions,” Glassnode mentioned in a recent report.
BTC is not the only digital currency that saw a jump in exchange outflows. Ethereum, the world’s second-most valuable cryptocurrency, also witnessed a similar trend. Earlier this week, net daily ETH exchange flows reached -$1 billion. On 29 March, ETH exchange outflows touched $1.8 billion, compared to the inflows of $793 million.
Coinbase is a crypto exchange that provides a secure way to buy, sell, and trade cryptocurrencies. It is a popular platform in the crypto industry and excels in providing its services to its users. Thus the recent whale activity is done from Coinbase exchange while whales usually utilize any exchange or wallets. Although the activities of whales have surged high in recent years following the growth in the adoption of cryptocurrencies.
However, BTC is the prominent cryptocurrency in the market that all the traders would focus on. Therefore whales target mainstream cryptocurrencies like BTC and ETH while these transactions might reflect in the price action. As of now, BTC is again moving towards the $48K level and if it breaks that level then will reach the $51K level as it’s the next resistance-zone.