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Bitcoin Coinbase inflows surge, is this bearish for BTC?

On-chain data shows that the Bitcoin-Inflows to Coinbase have skyrocketed recently, a sign that could prove bearish for the crypto.

Bitcoin exchange inflows to Coinbase register high values

As one analyst pointed out in a CryptoQuant post, a total of 20,000 BTC was recently transferred to Coinbase. “Exchange inflow” is an indicator that measures the total amount of bitcoin currently being transferred to an exchange (in this case, Coinbase).

When the value of this metric is high, investors are sending lots of coins to the exchange right now. Since one of the main reasons holders deposit into exchanges is for sales-related purposes, this trend can have bearish implications for the price of the crypto.

On the other hand, low values ​​indicate that investors are not making many deposits in the exchange. Such a trend could be either bullish or neutral for BTC, depending on whether or not market-wide inflows are also bearish.

Now, here is a chart showing the trend of bitcoin inflows to crypto exchange Coinbase over the past few months:

Bitcoin Coinbase inflows surge, is this bearish for BTC?, Crypto Trading News

It looks like the value of the metric has been high on several occasions over the past few days | Source: CryptoQuant

As shown in the chart above, Bitcoin exchange inflow to Coinbase has seen many sizeable spikes over the past few weeks. However, as is evident, there has been no significant price movement after these large deposits.

These spikes weren’t that big individually. So if the investors who made those transfers disposed of their coins immediately after the transactions were completed, it would make sense that they couldn’t cause volatility.

However, the quant notes that there could be a different scenario here. What if the holders responsible for those inflows haven’t triggered the sale yet? It’s not uncommon for investors to deposit their coins to exchanges ahead of time and wait for the right price moves.

All of these transfers amounted to around 20,000 BTC entering Coinbase’s wallets. At the current exchange rate, this stack would be worth around $336 million, which is certainly large enough to cause crypto price volatility if sold all at once.

“Of course, if it were sold right after the deposit, the situation would be different, but you have to be careful if it hasn’t been sold yet,” warns the analyst.

BTC price

At the time of writing, Bitcoin is trading around $16,800, up 1% over the past week.

Bitcoin Coinbase inflows surge, is this bearish for BTC?, Crypto Trading News

BTC seems to have seen a small spike over the past few days | Source: BTCUSD on TradingView Featured image by Kanchanara on Unsplash.com, charts by TradingView.com, CryptoQuant.com

Source: Crypto News Deutsch

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