- Bitcoin saw two major outflows from Coinbase in the last week.
- The exchange's premium index recorded a corresponding increase.
On April 1st, Bitcoin [BTC] According to CryptoQuant's data, Coinbase saw its second largest outflow from the leading cryptocurrency exchange Coinbase.
According to the data provider, 17,000 BTC worth around $1 billion were removed from exchanges that day. Previously, on March 28, Coinbase outflows totaled 16,800 BTC.
Large outflows from Coinbase often indicate that large institutional investors are moving significant amounts of their BTC holdings.
This can be for various reasons, such as diversification of investments or allocation to other investment instruments.
CryptoQuant analyst Burak Kesmeci shared the same view, noting that the recent surge in BTC outflows from Coinbase “could be related to institutional buying or spot ETFs.”
Coinbase Premium Retracements
The large number of BTC removed from Coinbase on April 1 coincided with a reversal in the coin's Coinbase Premium Index (CPI).
On that day, the coin's CPI, which was on the verge of falling back into negative territory, changed course and trended upwards.
Source: CryptoQuant
This metric measures the difference between BTC prices on Coinbase and Binance. If its value increases, it would indicate significant buying activity from US-based investors on Coinbase.
On the other hand, if it declines and falls into negative territory, it signals lower trading activity on the US stock market. At press time, BTC’s CPI was at 0.045.
Between March 31st and April 1st this increased by over 250%.
The fact that the activity of US-based coin holders is increasing again can also be seen in the fact that BTC's Coinbase Premium Gap has increased by over 200% within 24 hours.
Although Asian markets followed a similar trend during the period, an assessment of BTC's Korean Premium Index (KPI) found that it remained positive despite multiple declines in 2024.
At press time, BTC’s KPI was 6.68.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2024-25
This metric measures the price difference of BTC between South Korean exchanges and other global exchanges.
If the value of the index is positive, it indicates increased demand for Bitcoin in the South Korean market compared to other markets.
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