Coinbase Bleeds: 58K BTC Drain Signals Bitcoin Exchange Drought

Recently, Bitcoin (BTC), the pioneering and largest cryptocurrency globally, has garnered considerable interest due to its pronounced volatility. Its price has fluctuated significantly, ranging from $60,000 to $67,000, following a peak at an all-time high of $73,750. Additionally, there’s a notable decrease in Bitcoin holdings on exchanges, with the exchange supply hitting an unprecedented low.

Coinglass reported a significant drop in the Bitcoin exchange supply, reaching a low of $1.79 billion on Friday, Mar 23. Notably, Coinbase Pro emerged as the leading factor in the BTC outflow from cryptocurrency exchanges, with over 14,800 BTC withdrawn on that Friday alone.

Moreover, over the past month, approximately 58,000 BTC were withdrawn from Coinbase Pro. This significant Bitcoin outflow contributed to a substantial surge in BTC price recently, driven by heightened scarcity due to supply constraints. Consequently, Bitcoin maintained a price level of $67,000, rebounding from a low of $60,000.

Alternatively, the BTC exchange supply rebounded with over 1,500 BTC entering Coinbase Pro on Monday, Mar 25. Nevertheless, there was a continued outflow from Binance, Kraken, and Bybit. Binance alone witnessed nearly 4,000 Bitcoin withdrawals in the last 30 days, while Bitfinex saw a substantial drain of over 30,400 BTC within the same timeframe.

Analysts Anticipate Bitcoin Correction

The price of Bitcoin saw a significant rebound, reaching $67,139.08 and experiencing a gain of 4.68% as of Monday, Mar 25. Additionally, the cryptocurrency boasted a market capitalization of $1.32 billion. Moreover, the 24-hour trading volume for BTC surged by 32.14% to reach $29.95 billion.

During the recent price recovery, Bitcoin holdings valued at over $61.84 million were liquidated. Short positions took the lead, with liquidations totaling a significant $46.27 million in the last 24 hours. The repurchase of these positions is anticipated to drive a short-term surge in prices.

However, After the short squeeze, there could be a significant drop in BTC value. Additionally, analysts such as Michaël van de Poppe anticipate a correction of 10-40% in the BTC price prior to the Halving event. However, a new peak is anticipated after the Halving event in April of this year.

Related Reading | Bitcoin (BTC) Mining Difficulty Hits ATH As Halving Sentiment Reboots

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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