The Bitcoin market has recently seen a confluence of bullish indicators, as explained in a previous article. These indicators are extremely bullish for Bitcoin, whether from a retail or institutional perspective. To add more bullish bias to this, 12,006 BTC recently joined Coinbase Pro, one of the largest and most popular exchanges in the United States.
What does this mean?
Generally speaking, an inflow of crypto-assets into exchanges means that it is bearish for those assets as investors can dump their holdings for a fiat or something similar.
If assets flow out of an exchange, it means that investors see a bullish scenario ahead of them and would rather hold Bitcoin in the long run, rather than keep it on swap exchanges n less secure.
Source: CryptoQuant
Now, here’s what’s interesting for Coinbase – This outflow of Bitcoin surpasses the 2018 punch.
In terms of its price, this is really bullish for Bitcoin. However, looking at the size of the outflow, this seems like a huge OTC deal.
Like mentioned by CryptoQuant CEO Ki Young Ju, the timing and size coincide with Grayscale’s rise in Bitcoin holdings [which as explained in a previous article was around 12000 BTC].
The periodic closure of the investor fund by Grayscale signals a side shift in the price of Bitcoin, and during this time, we can expect the GBTC premium to slowly decline. However, when Grayscale opens to investors, we can see a positive dip in the price of Bitcoin.
What is different this time is that the buying pressure from institutional investors is huge and obvious. So this time, we might not see Bitcoin moving sideways. In fact, it could swell slowly, following a trend very similar to that seen in early 2017.
Source: Coinstats
At the time of writing, another huge OTC transaction had taken place resulting in outflow of 12,000 more BTC from Coinbase. In summary, some 24,000 BTCs have flown out of Coinbase and into the pockets of organizations. While this may be Grayscale, no one knows for sure. However, as mentioned, the chances of it becoming Grayscale are high, especially in light of the increase in its holdings from $ 13 billion a week ago to $ 16 billion, at the time of writing.