Crypto Exchanges See Large Bitcoin Outflows BTC balance of Coinbase

[bitmover]

This news is about 1 week old  but I believe the situation is quiet the same.

Bitcoin geld by exchanges are in the lowest value since 2017.
I don't get why we are still going down. Anyway, this is the longest bull run I have seen, and we are still in a very high price compared to January.

There is a selling pressure and a downside movement,  but that's not enough to crash bitcoin.

https://www.financemagnates.com/cryptocurrency/news/crypto-exchanges-see-large-bitcoin-outflows/

The Bitcoin balance on leading cryptocurrency exchanges is plunging again after a brief period of inflows in the last month. According to the latest data published by Glassnode, Coinbase saw massive BTC outflows over the last few days.

The total Bitcoin balance of digital exchange Coinbase now stands at around 700,000 BTC, its lowest level since December 2017. “After a period of moderate BTC inflows following the May Sell-off, Coinbase has seen a large outflow of coins. This brings the total balance to just over 700k BTC. The last time the Coinbase Bitcoin balance was at this level was December 2017,” Glassnode mentioned.

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[mk4]

I don't get why we are still going down.

I have no data or charts to show, but I could almost guarantee that it's just derivatives getting wiped and a chain of stop-losses getting triggered; especially that one huge red candle we had like 2 days ago. Everything fundamentally just says bullish, hence why it's the only reason I could think of that could've caused the selloff.

I could be wrong, of course.

[adaseb]

I discussed this before but I think the reason why more and more bitcoins are leaving exchanges is because there are hardware wallets out these days and cold storage is much easier for the average user. A few years back you had to either have a dedicated computer which was your cold storage or you had to print out those bitaddress one time use private keys which was tedious if you moved around your BTC.

Now we got many hardware wallets which are very safe and convenient to use. So as bitcoins value rises there is a threshold where people decide to withdraw rather than keep on it exchange. Last year when BTC was like $5K most people just held it on the exchange because 1 BTC wasn’t much but now how it’s almost $50K people take security more seriously. 

[Charles-Tim]

I do not know why only Coinbase was used for this, why Binance and other first five exchanges were not included? Binance remain the strongest exchange in the world with market volume of over $100 billion which also indicate market bitcoin volume to be highest on Binance. I might not be correct but I think this will deserve explanation as Binance and Huobi global are the leading exchange in the world now that have over 60-70% or more of the exchange crypto volume. I do not know much about Bitcoin and other cryptocurrencies in 2017, but I think Coinbase will dominate around that time unlike now. What I meant dif not mean this is not right, but using Coinbase while excluding other important exchanges can result to such question.

Also, 2017 is too long to draw accurate data of what would happen next, Bitcoin was at $19600 in its highest price in 2017 while Bitcoin is now still over $45000. Two or three massive exchange outflow into Bitcoin wallet occured this year IIRC and resulted to increase in Bitcoin price, I even posted on this forum two months ago the last one that happened within the last 6 months when Bitcoin price plumented to around $36000 all the way from all-time-high. I may be wrong, but I do not think 2017 is not too far to get accurate result.

I don't get why we are still going down.

Bitcoin price can not just continue to increase, there will be a bear time also, but over long period of time, the bull market will be potent than the bear which make bitcoin price to increase than in past time. But the bear time will help new investors to come in also to take advantage of what will happen next which is bull market again. Bitcoin price will increase, retrace and retest before reaching all-time-high again.

[mk4]

I discussed this before but I think the reason why more and more bitcoins are leaving exchanges is because there are hardware wallets out these days and cold storage is much easier for the average user. A few years back you had to either have a dedicated computer which was your cold storage or you had to print out those bitaddress one time use private keys which was tedious if you moved around your BTC.

Now we got many hardware wallets which are very safe and convenient to use. So as bitcoins value rises there is a threshold where people decide to withdraw rather than keep on it exchange. Last year when BTC was like $5K most people just held it on the exchange because 1 BTC wasn’t much but now how it’s almost $50K people take security more seriously. 

In a zoomed out manner, sure hardware wallet had a significant effect. But hardware wallets existed for how many years now? And add the fact that hardware wallets still isn't the norm when talking about the masses (because Coinbase and Binance is still by default the "main" wallet).

What bitmover was referring to was data that's a bit more recent; whereas people have been steadily leaving exchanges. (again, even when Ledger and Trezor have existed since 2013-2014)

[Poker Player]

Bitcoin geld by exchanges are in the lowest value since 2017.

I have seen this repeatedly in youtube videos about Bitcoin for some time.

I don't get why we are still going down.

I have no data or charts to show, but I could almost guarantee that it's just derivatives getting wiped and a chain of stop-losses getting triggered; especially that one huge red candle we had like 2 days ago. Everything fundamentally just says bullish, hence why it's the only reason I could think of that could've caused the selloff.

I could be wrong, of course.

I also think this is likely.

I discussed this before but I think the reason why more and more bitcoins are leaving exchanges is because there are hardware wallets out these days and cold storage is much easier for the average user. A few years back you had to either have a dedicated computer which was your cold storage or you had to print out those bitaddress one time use private keys which was tedious if you moved around your BTC.

Interesting.

Also, 2017 is too long to draw accurate data of what would happen next, Bitcoin was at $19600 in its highest price in 2017 while Bitcoin is now still over $45000. Two or three massive exchange outflow into Bitcoin wallet occured this year IIRC and resulted to increase in Bitcoin price, I even posted on this forum two months ago the last one that happened within the last 6 months when Bitcoin price plumented to around $36000 all the way from all-time-high. I may be wrong, but I do not think 2017 is not too far to get accurate result.

Well, actually, if we look at the 2017 chart, and assume that something very similar is going to happen, we would be within the normal range and the best is yet to come:



(Source: https://finance.yahoo.com/)

On September 10 the price was above $4k, had broken highs, had started the year above $900 and we had gone through a summer of FUD with hard forks. On September 10 the price was above $4k, had broken highs, had started the year above $900 and we had gone through a summer of FUD with hard forks. From September onwards the price started to gradually rise and from November onwards came the big spike (followed by a dip and bear market).

So, assuming that this cycle is similar to the previous one, everything that is happening with the price this year is within the normal range and the final push is still to come.

[EdenHazard]

I discussed this before but I think the reason why more and more bitcoins are leaving exchanges is because there are hardware wallets out these days and cold storage is much easier for the average user. A few years back you had to either have a dedicated computer which was your cold storage or you had to print out those bitaddress one time use private keys which was tedious if you moved around your BTC.

Now we got many hardware wallets which are very safe and convenient to use. So as bitcoins value rises there is a threshold where people decide to withdraw rather than keep on it exchange. Last year when BTC was like $5K most people just held it on the exchange because 1 BTC wasn’t much but now how it’s almost $50K people take security more seriously. 

In a zoomed out manner, sure hardware wallet had a significant effect. But hardware wallets existed for how many years now? And add the fact that hardware wallets still isn't the norm when talking about the masses (because Coinbase and Binance is still by default the "main" wallet).

What bitmover was referring to was data that's a bit more recent; whereas people have been steadily leaving exchanges. (again, even when Ledger and Trezor have existed since 2013-2014)

Simply because SEC wants coinbase to folow US regulation, biden regulation to be exact .

and that 1 sentiment from US break the 1 sentiment from el salvador. of course the US crypto sheet much more large than what nayib bukele claimed as el salvador held 550btc the time btc fall 10percent in few minutes 2 days ago. makes sense why those coins leaving coinbase and the price dropped down though.

[Charles-Tim]

I discussed this before but I think the reason why more and more bitcoins are leaving exchanges is because there are hardware wallets out these days and cold storage is much easier for the average user.

I believe some whales will resort to paper wallet and Bitcoin core within those years before hardware wallet were created, exchange volume were not as much as these days also, it is normal that whales and other crypto holders like to make use of noncustododial wallet (we can not specify if it is hardware wallet that is used or not but wallet). Bitcoin users at the start knows the rules than the recent Bitcoin users that do not even care about kyc, not your key not your coins is a strong word whales do not play with.

or you had to print out those bitaddress one time use private keys which was tedious if you moved around your BTC.

Hierarchical deterministic wallet was introduced in BIP 32 and that was 2012 if I researched correctly.

What bitmover was referring to was data that's a bit more recent; whereas people have been steadily leaving exchanges. (again, even when Ledger and Trezor have existed since 2013-2014)

You are absolutely correct. First Trezor wallet, 2013. First Ledger Nano wallet, 2014.

Well, actually, if we look at the 2017 chart, and assume that something very similar is going to happen, we would be within the normal range and the best is yet to come:

But what I meant was that it will be more accurate if the exchange outflow reduction occurred recently after the recent crash when Bitcoin plummeted from $52000 to below $46000. It will be a strong sign that whales are accumulating Bitcoin again which can easily lead to increase in Bitcoin price.

[stompix]

I don't get why we are still going down

Because:
- this is data from glassnode, a company which I will never forget for making this stupid shit up
- there is really no way tracking conveniently those coins, they might be going outside of Coinbase's cold wallet but nobody knows who's those wallets are until mode data is revealed
- companies tracking those movements have a lot of time made a fool of themselves by advertising as mysterious transfers that were simply cold wallets funds migrating to another new cold wallet.

Going away from blaming the poor data
- coins that sit on exchange and on exchange wallets are not coins that definitely must be sold
- coins that leave the exchange are not definitely coins moving to hardware wallets, they might be coins moving to bisq to be sold
- coins that leave that exchange might be coins who have been sold by the owner to somebody else, so thus the drop
- 1 million coins that are used to convert back and forth BTC<>USDT will not have the same effect as a dump of 1500BTC which right now would crash even Binance to under 40k.
- and most important, nobody knows how the amount of $ on exchange is fluctuating.

[bitmover]

Now we got many hardware wallets which are very safe and convenient to use. So as bitcoins value rises there is a threshold where people decide to withdraw rather than keep on it exchange. Last year when BTC was like $5K most people just held it on the exchange because 1 BTC wasn’t much but now how it’s almost $50K people take security more seriously. 

Although this makes some sense, hardware wallets are some old stuff. As mk4 said, ledger trezor exist for more than 7 years from now. I bought my ledger in 2017.


Even though 1 btc was 5 k usd in 2017, people would just send 10 btc from exchanges to a hardware wallet back then
I think what is happening now is that bitcoin is becoming really scarce. We just had a halving an year ago!

I do not know why only Coinbase was used for this, why Binance and other first five exchanges were not included? Binance remain the strongest exchange in the world with market volume of over $100 billion which also indicate market bitcoin volume to be highest on Binance. I might not be correct but I think this will deserve explanation as Binance and Huobi global are the leading exchange in the world now that have over 60-70% or more of the exchange crypto volume. I do not know much about Bitcoin and other cryptocurrencies in 2017, but I think Coinbase will dominate around that time unlike now. What I meant dif not mean this is not right, but using Coinbase while excluding other important exchanges can result to such question.

I agree, binance is much more relevant. But that was the only article related to the subject that I have found! Anyway, I believe the situation of binance might be similar, as those exchanges are somehow connected (whales use all of those big ones)

[STT]

Surely they measure volume in USD as well as the plain nominal amounts, naturally there is less seen as price rises.   I think the development of BTC will see it spread more thinly over a more diverse range of companies, also back in the day some would never leave the exchange just trading back and forth rather then ever applying it in some real use.   There is the main markets of course, it might be more efficient to use contracts to settle a position

[mk4]

Simply because SEC wants coinbase to folow US regulation, biden regulation to be exact .

and that 1 sentiment from US break the 1 sentiment from el salvador. of course the US crypto sheet much more large than what nayib bukele claimed as el salvador held 550btc the time btc fall 10percent in few minutes 2 days ago. makes sense why those coins leaving coinbase and the price dropped down though.

The SEC going stricter might've contributed to this because it might've spooked some hodlers, but if I remember correctly the exchange outflows of coins started even before the fiasco with the SEC. But yea, it might've given the outflows a good push.

[EdenHazard]

Simply because SEC wants coinbase to folow US regulation, biden regulation to be exact .

and that 1 sentiment from US break the 1 sentiment from el salvador. of course the US crypto sheet much more large than what nayib bukele claimed as el salvador held 550btc the time btc fall 10percent in few minutes 2 days ago. makes sense why those coins leaving coinbase and the price dropped down though.

The SEC going stricter might've contributed to this because it might've spooked some hodlers, but if I remember correctly the exchange outflows of coins started even before the fiasco with the SEC. But yea, it might've given the outflows a good push.

Yeah i noticed it in february and that time bitcoin price stealing the show .. U.S institutions getting involved buying bitcoin in the dip, the outflow spike high.
and again since may where bitcoin price touching its lowest price in 100 days , the outflow spike high ... indicating U.S. institutional investors are still buying bitcoin?

well , i believe so, hopefully so.

[mk4]

Yeah i noticed it in february and that time bitcoin price stealing the show .. U.S institutions getting involved buying bitcoin in the dip, the outflow spike high.
and again since may where bitcoin price touching its lowest price in 100 days , the outflow spike high ... indicating U.S. institutional investors are still buying bitcoin?

well , i believe so, hopefully so.

How is the increase in outflows indicate that institutional investors are buying? lol. Obviously the exchange outflows and institutional volume metrics are totally unrelated.

[hugeblack]

The stricter the laws and tax rules, the more people will prefer not to keep cryptocurrencies in exchanges because there is no guarantee if these platforms are hacked.
The trend is bullish and a platform like Binance has asked users to verify identity and a lot of platforms are under surveillance so I don't think a lot of people are going to keep it.

In general, this does not confirm that the price will rise, but at least a lot of people have become distrustful of platforms to leave their money on them, or more confident that the price will rise.

Don't forget that 700,000 bitcoins are not the same value in 2017.

[timerland]

People are understanding that Coinbase is a custodial service and therefore not a good way to store coins in the long run - it's as simple as that.

The outflow doesn't mean anything more. It doesn't mean that people are selling bitcoin or whetever as they would need coins on exchanges in order to do that.

Bullish news in my view, although it is likely already priced in.

[icopress]

People are understanding that Coinbase is a custodial service and therefore not a good way to store coins in the long run - it's as simple as that.

Okay, ironic aside (at the initial stage of development, Coinbase was called Bitbank) Coinbase is still the best storage service since 98% of all actives are stored in cold wallets, and do not forget about their insurance fund, "Coinbase is one of the only exchanges that offers FDIC insurance on USD (US Dollar) deposits".

I do not know why only Coinbase was used for this, why Binance and other first five exchanges were not included? [...]

I apologize for moving away from the topic ... but I think this post is more relevant than ever.

So let's be clear about something ... First, Coinbase and Binance are not competitors to each other, despite the fact that each of these exchanges has 50 million users. Both exchanges have different goals, with Coinbase targeting USA and Europe while Binance is targeting Eurasia and South America, (to simplify, we can say that it is a matter of jurisdiction, and politics).

Second, the appraised values of these exchanges differ significantly. Despite the colossal trading volumes, everyone forgets that before founding, Binance enlisted the support of the Asian Whales in exchange for long-term trading incentives. I will not be too unfounded, but judging only by the numbers, then Coinbase already has 12% of the total crypto market capitalization at its disposal. You can say that BNB is breaking records, and the capitalization of this token is $ 80 billion - but in reality it is just an altcoin, if Binance announced the IDO now, then BNB would not be included in the estimated value of Binance, (correct me if I am wrong).

[EdenHazard]

Yeah i noticed it in february and that time bitcoin price stealing the show .. U.S institutions getting involved buying bitcoin in the dip, the outflow spike high.
and again since may where bitcoin price touching its lowest price in 100 days , the outflow spike high ... indicating U.S. institutional investors are still buying bitcoin?

well , i believe so, hopefully so.

How is the increase in outflows indicate that institutional investors are buying? lol. Obviously the exchange outflows and institutional volume metrics are totally unrelated.

Because you and i or any other forum member here or whoever out there who hold personally less than 10 bitcoin can not make that happened , a big impact caused by a big thing .. and considering its become a trend an institutional especially in the US get involved in bitcoin investment in the last few months , why not ? who else?

[pooya87]

Anyway, this is the longest bull run I have seen,

The previous cycle lasted 1500 days while this time we are still in ~1200ths day. So about 300 days is left from this bull run to reach the longest bull run ever.

and we are still in a very high price compared to January.

And we are in a very low price compared to the peak of the possible bubble.

The total Bitcoin balance of digital exchange Coinbase now stands at around 700,000 BTC, its lowest level since December 2017.

I'm not convinced that the number of coins on exchanges has anything to do with price prediction, although that doesn't stop people from using it! I simply don't see any connection to future price. It is all about how the price has been in recent times which is with very little change if we exclude the short rises.

[mk4]

Because you and i or any other forum member here or whoever out there who hold personally less than 10 bitcoin can not make that happened , a big impact caused by a big thing .. and considering its become a trend an institutional especially in the US get involved in bitcoin investment in the last few months , why not ? who else?

Because it's not just you and me and other people here. There are HUGE communities outside of Bitcointalk if you haven't known; and definitely do not underestimate the collective buying power of the masses.

And add to the fact that most institutions actually use the likes of Coinbase Institutional so you wouldn't expect an outflow.