Bitcoin Exchange Inflows To Coinbase Register High Values
As pointed out by an analyst in a CryptoQuant , a total of 20k BTC was transferred to Coinbase recently. The “exchange inflows” is an indicator that measures the total amount of Bitcoin currently being transferred to an exchange (which, in this case, is Coinbase).
When this metric’s value is high, investors send many coins to the exchange right now. Since one of the main reasons holders deposit to exchanges is for selling-related purposes, this trend can have bearish implications for the price of the crypto.Now, here is a chart that shows the trend in the Bitcoin inflows to the crypto exchange Coinbase over the last couple of months:
Looks like the value of the metric has been high on several occasions in recent days | Source:As shown in the above graph, the Bitcoin exchange inflow to Coinbase has recorded many sizeable spikes in the last couple of weeks. However, as is apparent, there were no significant price moves following any of these large deposits.
These spikes were not that big individually. So if the investors who made these transfers dumped their coins as soon as they completed the transactions, it would make sense that they couldn’t cause any volatility.
However, the quant notes that there could be another scenario here. What if the holders responsible for these inflows haven’t pulled the trigger on the selling yet? It’s not unusual for investors to deposit their coins to exchanges in advance, waiting for the right movements in the price to exit.BTC Price
At the time of writing, Bitcoin is trading around $16,800, up 1% in the last week.BTC seems to have seen a small increase in the last few days | Source: