A huge sum of $700M worth of Bitcoin was reportedly withdrawn from Coinbase exchange on the 7th of May. The weighty amount was said to be equivalent to 12,354 BTC. This is one of the largest single-day outflows on record from the exchange.
According to the Chief Investment Officer at Moskovski Capital, the massive outflow of BTC from the exchange may be linked with the actions of institutional investors. The huge amount was reportedly withdrawn within just one hour. This could be an indication that the institution or individual who pulled out of the exchange is not ready to sell their asset any time soon.
12,354 #Bitcoin withdrawn from Coinbase in an hour.
Institutions or not, that's still a significant outflow. pic.twitter.com/cMGQMZkNVX
— Lex Moskovski (@mskvsk) May 7, 2021
In a recent tweet from Lex Moskovski, revealed a graphical representation of Bitcoin’s outflows and inflows, sourced from Glassnode. The graph indicated the volume of Bitcoin that left the exchange from the start of the month till date. Moskovski made remarks on the recent outflow saying, “institutions or not, that’s still a significant outflow”.
Institutional Investors Continue to Adopt Bitcoin
While it was not fully confirmed that the outflow was related to large institutions, Bitcoin in recent times has caught the interest of more institutional investors. Hedge funds have begun offering Bitcoin custody services to their clients. A good example is the Morgan Stanley Bank of America. It began offering BTC custody to its clients very recently. Exchange-traded funds are on the rise and Bitcoin Trust funds have been invested in more than ever before.
The huge outflow of BTC from Coinbase caused some funny reactions on Twitter yesterday. One Twitter user jokingly commented that he is kind of annoyed that the quantity of Bitcoin leaving Coinbase was not 12345 instead of 12354. Another user tweeted that the figure 12354 seems like a joking number.
Coinbase exchange has processed millions of Bitcoin withdrawals and deposits since its founding. The exchange has also been accessible for all, reliable and transparent in the financial ecosystem. The main aim of the exchange from its inception was to enable as many people as possible to send and receive Bitcoin and other crypto assets securely and easily.