Outflows from Coinbase’s institution-focused platform show that large or multiple large investors may be moving Bitcoin for likely long-term storage or other purposes.
According to data from CryptoQuant, a provider of on-chain data, charts, and alerts, about 14,666 BTC flowed out of Coinbase Pro on Tuesday morning.
On Tuesday, the world’s largest cryptocurrency traded 0.53% lower at $54,556.78, which values the outflow at an estimated $800.13 million.
According to the CEO of CryptoQuant, Ki-Young Ju, the outflow was divided into multiple wallets, which could be their hot wallets, representing an internal transfer or custodian wallets for institutions.
On Monday, the dominant cryptocurrency, Bitcoin, fell to the $54,000 mark, a level unseen in nearly two weeks.
According to CoinDesk, outflows from Coinbase are often used as a metric to measure the institutional demand for Bitcoin as the exchange’s cold wallets for custody are integrated with its OTS desk.
Institutional investors and large traders reportedly trade through the OTC desks in order to avoid having too much influence on rates.
Ju says he thinks it’s likely to be a custodian wallet, which might show institutions are still buying the dip.
In February, Elon Musk-led Tesla Inc invested $1.5 billion in Bitcoin. Other large investors who have exposure to BTC include MicroStrategy Incorporated, which owned 90,531 BTC, as of late February today worth about $4.93 billion.
Jack Dorsey’s Square Inc also purchased $170 million worth of BTC in February after making a $50 million BTC purchase in October last year.
Cryptocurrency firm Blockchain.com announced it had raised $300 million in its latest funding round at a valuation of $5.2 billionThe round was driven by DST Global, Lightspeed Venture Partners, and VY Capital.
Blockchain.com offers digital wallets to store cryptocurrencies and retail trading, and other services for more prominent investors.
Bitcoin rose to a record high of nearly $62,000 this month as mainstream firms and investors increasingly embrace cryptocurrencies, leading to ballooning valuations of related companies.
Blockchain.com announced in February it raised nearly $120 million, with investments from Alphabet Inc’s venture capital unit.
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