Currently, the prices of digital currencies are incredibly high. Yet, business firms ceaselessly purchase them in a bid to survive inflation. Bitcoin is transacted at $59,846 point as it attained a zenith mark of $60,760. It was recorded the previous day to have soared to a remarkable height of $61,500. Ethereum also had a surge in price, attaining a new peak of $2,200, making the second top digital currency rally on Sunday.
Coinbase Keeps Selling out Huge Quantities of BTC
Previously, a source revealed a chart showing that business organizations were purchasing and withdrawing vast quantities of bitcoin from Coinbase. Earlier in March, it was reported that crypto worth $806 million was exchanged from Coinbase Pro, a unit of Coinbase exchange.
A report from CryptoQuant, a blockchain analytics firm, detailed that Coinbase traded off 14,666 bitcoin right after the tumbled, and also, many wallets were used in the transaction. These wallets could be private ones depicting an internal transfer or custodian wallet for institutions.
Ju, the analytics firm’s CEO, speculated that the wallet is a custodian wallet that shows that companies are responsible for the transactions. Ju was uncertain of the outflow source on the Twitter platform, the crypto team triumphs over the colossal transfer. On Sunday, April 11, yet again, an overwhelming 12,638 BTC ($770 million) was transacted from Coinbase by giant crypto firms in less than 10 minutes.
Statistics show an Increasing Outflow of Coins from Miners
Statistics showed a remarkable increase in the amount of bitcoin flowing out to crypto exchanges from the miners. Miners wallet is currently experiencing a massive outflow of the coin as the chart shows the Miners to Exchange Flow signal is now at a month high of 17,767 Bitcoin. The Netflow volume has indicated that the coins were transferred to exchanges to be offered for sale over the counter.
The crypto seems exposed to a significant drop in price as the number of coins on exchanges for sales suddenly keeps rising. Scenario as such had occurred before where the increase in miner outflow is followed by fall in prices.
However, it doesn’t mean there would be a drop this time. An instance was on August 2 when the flow of coins from miners rose from 380 bitcoin to 1,824 bitcoin. But remarkably, on August 6, the crypto did not fall in price; instead, it hit a hall time of $12,300.
Previously, it was reported that miners begin to hoard bitcoin for the first time in five months instead of selling them, which is typical of miners to withhold coins when they perceive weakness in the market, which deters it from appreciating their offers.
However, miners are trading out coins at an alarming rate. It is now a quest of time as we patiently keep speculating to see whether the recent increase in coins’ flow from miners would result in a significant fall in price or become bearish on the negative side of the market.