Over three transactions, bitcoin ($BTC) whales have withdrawn over $1.1 billion worth of the cryptocurrency from the Nasdaq-listed cryptocurrency exchange Coinbase. The whale withdrawals suggested accumulation to hold over the long-term.
As first reported by Cointelegraph, blockchain analytics services flagged three major withdrawals from Coinbase Pro, Coinbase’s professional investment platform. These transactions moved 9,843 BTC, 9,901 BTC and 9,867 BTC, respectively for a total of 29,420 BTC being moved.
While the whale’s transactions did not affect BTC’p rice, they appear to show the entity behind the transactions is looking to custody their own funds for long-term. The withdrawals come at a time in which various cryptocurrency exchanges have been advocating for self-custody, as they may be forced to freeze users’ assets if ordered by regulators.
Earlier this month Coinbase blocked 25,000 wallet addresses related to Russian individuals or entities it believes have engaged in illicit activity. The addresses were blocked over fears they could be used to evade sanctions levied against Russia over its invasion of Ukraine.
Cointelegraph has further noted that broadly, cryptocurrency exchange reserves have been dropping over time. Data from on-chain analytics firm CryptoQuant shows they have been slowly declining over time. Lower exchange reserves suggest less BTC is available on the market, meaning its price may rise of demand surged.
As CrypptoGlobe reported, several analysts have been bullish on BTC over the current macroeconomic factors affecting the markets. Former Goldman Sachs executive Raoul Pal has revealed he believes that cryptocurrencies are one of the “right trades” during the “dark times” we are going through, implying their setup is now close to the one seen in March 2020.
Per his words the “entire set up is very similar to March 2020 for crypto” although traditional recession trades outside of the space would still be useful. The executive added that “no one owns enough bonds and gold,” and wished his followers luck during these “dark times.”
In March 2020, according to CryptoCompare data, the price of the flagship cryptocurrency Bitcoin ($BTC) was hovering around the $6,600 mark and the sentiment was seemingly bearish. In early 2021, the price of BTC hit a new all-time high of $63,700, before receding. Later that year, BTC hit a new high close to $69,000.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.