Yesterday, more than 48,000 BTC was moved out of Coinbase, the biggest cryptocurrency exchange in the United States. Statistics show that Coinbase is the favorite exchange of major institutions. That being said, such a move might indicate that certain institutional investors are backing out from trading Bitcoin at this time. Understanding how the global recession is continuing, this move is nothing to be surprised off.
This transaction was the biggest of its kind since the crash in June 2022. As for the long term, this is the second-biggest outflow of all time. When such big withdrawals happen, it indicates that investors are storing their Bitcoin in another wallet than letting them sit in an exchange. This often happens when investors are trying to accumulate as much BTC as possible.
According to CryptoQuant’s data, these Bitcoins were moved in batches of 122 Bitcoin. Maart Regterschot, a crypto analyst, sees a pattern in these transactions. He suggests that they are similar to some transactions done in the previous bull run. Moreover, he believes that, even though this transaction is huge, it won’t affect the price of Bitcoin. Well, the Twitter account @Bitcoin has some other ideas. Immediately after the transaction, they tweeted a graph that shows another bull run coming.
Look what happens when the #Bitcoin is drained from @coinbase. pic.twitter.com/vpXpKtdMOd
— Bitcoin (@Bitcoin) October 19, 2022
As Bitcoin’s price continues to fall, this crypto is losing its correlation with stocks. However, though, this correlation is still sitting among its all-time highs. What is unusual these days is the low volatility of Bitcoin, something that is shocking to almost everybody. While stocks and other currencies are extremely volatile right now, the crypto market is sitting steady.
Does Coinbase’s Bitcoin Transaction Indicate Another Bull Run?
Now the question arises, does this huge Bitcoin transaction indicate another bull run coming? Well, we don’t know. Seeing how the conflicts around the world and the global recession are evolving, expecting another bull run soon would be unrealistic. On the other hand, however, two main factors might positively affect the cryptocurrency market: fiat currency’s recent volatility and sanctions.
First, fiat currencies all around the world are experiencing high volatility, something that is not natural for them. Major currencies like the British pound (GPD) and the Euro (EUR) are losing their value against the US Dollar (USD). This is mainly because the United States is pumping the value of the dollar, however, that does not justify this occurrence.
Second, we have sanctions; not only sanctions, but everything that makes it impossible for two countries, businessmen, institutions, or any other type of entity to trade with one another. Being in the circumstances that we are in now, many individuals and groups would rather make micro and macro payments using cryptocurrencies than other currencies.
Ultimately, we cannot know what will happen for sure in the next few months. Nevertheless, all we can say is that this may be the best time to accumulate as much cryptocurrency as possible before the next bull run hits.