Recent data from crypto analytics firm Glassnode has revealed that the amount of Bitcoin held on Coinbase has reached a 9-year low. This decrease in Bitcoin holdings on the popular exchange could potentially signify a shift in investor behavior towards holding for the long term rather than selling in the short term. With only 344,856 BTC held on Coinbase as of March 18, it is clear that investors are opting to move their holdings off exchanges, which could ultimately reduce short-term selling pressure on Bitcoin.
The decrease in Bitcoin holdings on Coinbase appears to be part of a broader trend, as data from market intelligence platform Santiment also shows a decline in the total amount of Bitcoin held on centralized exchanges. In fact, these exchanges have been experiencing more outflows than inflows recently, indicating a shift towards holding Bitcoin off exchanges. This trend is further supported by the fact that only 836,000 BTC is currently held on exchanges compared to the 18.82 million BTC held off exchanges.
The decline in Bitcoin holdings on exchanges comes at a crucial time, as the cryptocurrency market has been grappling with a wave of profit-taking in recent weeks. Prior to this development, bearish sentiment towards Bitcoin was reinforced by JPMorgan’s belief that the cryptocurrency was overbought and could experience further price declines. However, with Bitcoin now trading above $70,000 and showing signs of upward momentum, there is optimism that the cryptocurrency could potentially reach new all-time highs.
BitMEX Research recently reported that Spot Bitcoin ETFs saw a combined net inflow of $15.7 million on March 25, signaling a positive shift in investor sentiment towards Bitcoin. This influx of capital into Bitcoin ETFs marks a reversal from the negative flows observed in the previous week, which contributed to a temporary dip in Bitcoin’s price. The flows of these Bitcoin ETFs will be closely monitored by the crypto community to gauge the prevailing market sentiment towards Bitcoin.
At the time of writing, Bitcoin is trading at around $70,700, representing a more than 5% increase in the last 24 hours. This uptrend in Bitcoin’s price is a positive sign for investors and indicates growing confidence in the cryptocurrency market. As Bitcoin continues to attract interest from institutional and retail investors alike, the outlook for the cryptocurrency remains favorable.
The decrease in Bitcoin holdings on centralized exchanges like Coinbase signifies a shift towards long-term holding strategies among investors. This trend, coupled with positive price movements and inflows into Bitcoin ETFs, could potentially lead to a bullish market outlook for Bitcoin. However, investors are advised to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.
