$500 million flows out of Coinbase as institutional purchases far exceed miners’ capacity

Data shows that despite short-term bearish signals, big money is still scrambling for available Bitcoin supply. According to on-chain analysis resource CryptoQuant, this week alone, the institutional-focused exchange Coinbase Pro saw two large withdrawals of more than 12,000 BTC (about $278 million).
On the evening of December 24, Bitcoin once again failed in its attempt to break through the $24,000 level. But data shows that the appetite for large buy orders is only getting bigger.
According to records from on-chain analysis resource CryptoQuant, this week alone, the institutional-focused exchange Coinbase Pro saw two large withdrawals of more than 12,000 BTC (about $278 million).
Coinbase sees over $550 million in outflows
As Cointelegraph reported, while not confirmed, a single large outflow suggests that a buyer purchased a large amount of BTC and the proceeds were transferred to a single storage wallet.
“Another large outflow from Coinbase a few hours ago,” CryptoQuant CEO Ki Young Ju said in a Twitter comment, adding:
“Institutional investors are buying BTC.”
In November, miners unlocked less than 28,000 BTC in block rewards—barely more than two Coinbase Pro transactions combined. This implied supply squeeze forms the core argument for a continued upward price movement.
Grayscale leads the competition for BTC supply
The potential desire to absorb Bitcoin supply at the $23,000 price level contrasts with external factors affecting market sentiment, especially the lawsuit against Ripple by U.S. agencies and the expected changes in the recovery treatment of Mt. Gox.
Concerns that Ripple’s associated altcoin XRP could become completely untradable due to the legal action appear to have triggered BTC’s massive moves over the past 24 hours.
Meanwhile, the market is awaiting the distribution of funds to Mt. Gox’s creditors, who, six years later, are likely keen to sell some or all of their BTC at 2020 prices, leading to an additional $3.2 billion in selling pressure.
Beyond these short-term factors, however, overall institutional bullishness on Bitcoin remains evident, with new commitments surfacing almost constantly.
Boom, +$500 million in one day https://t.co/L2MnXDCDQB
— Barry Silbert (@BarrySilbert) December 23, 2020
The latest data from investment giant Grayscale on Wednesday confirmed that it currently controls $16.4 billion in assets under management, with an increase of $500 million in a single day. (Cointelegraph)