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$1 Billion Worth of Bitcoin Withdrawn from Coinbase, Bullish on BTC Price?

Bitcoin is just under $52,000 and is still down about 25% from its all-time high of the previous bull run. However, the leading crypto asset is seeing vastly improved sentiment among investors.

In fact, Bitcoin holdings on Coinbase, a leading crypto exchange in the space and the largest in the US, have fallen to their lowest level since 2017. And whales are betting heavily on the asset.

Whales make big bets

According to the latest data from CryptoQuant analyst, more than 18,000 BTC worth around $1 billion have been removed from the platform by whales.

After such a large Bitcoin supply was withdrawn from Coinbase, the funds were distributed among several new wallets, valued between $45 million and $171 million.

This means that Coinbase's public order book now totals around 394,000 BTC, which is equivalent to just over $20.5 billion. CryptoQuant founder Ki Young Ju also revealed that the funds were transferred to several non-exchange addresses, likely custodial wallets.

Accumulation game strong

The demand for Bitcoin is evident as whales are showing the highest level of activity not seen in almost two years. In 2024, large holders with 1,000 to 10,000 BTC in their wallets accumulated approximately $13 billion worth of assets. Meanwhile, those with holdings between 100 and 1,000 BTC lost $7.89 billion from their holdings.

Such a trend of whales withdrawing their supplies from centralized crypto exchanges is usually a positive sign. Last week, Bitcoin whale wallets acquired over 100,000 BTC alone, estimated at around $5 billion, in just ten days. Historically, such accumulation points signal a rise in price.

The recent whale moves come amid a market-wide rally fueled by the launch of spot Bitcoin ETFs.

After its successful launch and subsequent massive inflows, all eyes are on the Bitcoin halving, which is expected to take place in April this year. Therefore, the transfer to custodial wallets could indicate increased confidence in a price increase in advance.

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