Coinbase has seen its overall balance drop by around 36.6 per cent in 24 months, due to large BTC withdrawals.
BTC Exchange Supply Shows Decline According to Recent Reports
The total Bitcoin balance at Coinbase is now approximately 650,000, as per Glassnode. This compares to the 1,025k BTC record in April 2020.
Coinbase’s balance has dropped by about 30k BTC in the last week. The bitcoin outflows via digital asset trading platforms have increased since April 2020. Over the last two decades, bitcoin outflows from digital asset trading platforms have been decreasing dramatically.
Glassnode was mentioned in the weekly on-chain analysis reports:
“This outflow has dropped the total balance held on Coinbase to 649.5k BTC, bringing it back to levels last seen at the 2017 bull market top. Coinbase now holds a total Bitcoin balance of 375.5k BTC, which is 36.6%) less than the ATH in April 2020. Large outflows like this one are actually part of a consistent trend in the Coinbase balance, which has been stair-stepping downwards over the last two years.”
The crypto exchanges that trade Bitcoin around the world now account for nearly 10% of all active Bitcoin supplies. lowest amountIn the past three years. In the last one year, there has been a decrease in supply by more than 3 percent. On the other side, BTC’s illiquid supply has risen to 76 percent, the highest level in ten months.
Glassnode stated the following while discussing current market dynamics and BTC’s price action:
“Bitcoin prices continue to consolidate this week, compressing into an increasingly tight range between a low of $37,274, and a high of $42,455. As was covered in the previous edition, the market currently exists in a delicate balance, amidst a backdrop of high macro and geopolitical uncertainty playing out on the global stage.”
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Prices fall
Bitcoin (BTC), an electronic currency, suffered a short squeeze overnight March 15. Bulls set their sights on breaking the $40,000 resistance.
According to market behaviour during the period as shown below, huge liquidity exists both above and below $45K’s resistance level. The liquidity is usually absorbed by the market before there’s a healthy surge.
The market is nervous ahead of tomorrow’s FOMC meeting, which will make important decisions about interest rates and the growth/printing of the US money supply.
Chart of BTC/USD for the month. TradingView
The first barrier to upward direction is the marked descending line on the RSI indicators. Conversely, if direction is downward the first significant resistance is marked descending lines on the RSI indicators (the lower part of the chart).
As a result of the recent squeeze higher, data from on-chain monitoring resource Coinglass showed minor shakeouts – BTC liquidations totaled $47 million over 24 hours.
Chart showing liquidation of cryptocurrency. Source: Coinglass
A daily closing price change also ended any hope of an optimistic outcome.
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