Bitcoin Holdings on Coinbase Reach 9-Year Low, Fuelling Speculation of $75,000 ATH
Data from crypto analytics firm Glassnode has revealed that the amount of Bitcoin held on popular exchange Coinbase has reached its lowest point in nine years. This development is sparking speculation that the flagship cryptocurrency could soon reach a new all-time high (ATH) of $75,000. Glassnode’s report indicates that the Bitcoin balance on Coinbase plummeted to just 344,856 on March 18, suggesting that investors are opting to move their holdings off exchanges and hold them for the long term instead of selling in the near future.
This downward trend in BTC holdings on Coinbase appears to be mirrored across centralized exchanges, according to data from market intelligence platform Santiment. Santiment’s data further confirms this trend, revealing that exchanges have experienced more outflows than inflows recently. The supply of Bitcoin on these exchanges as of March 22 was just over 836,000 BTC, whereas over 18.82 million BTC is held away from centralized exchanges.
Previously, JPMorgan’s bearish sentiment and claim that Bitcoin was overbought increased concern for potential price declines. However, with Bitcoin now trading above $70,000, there is growing belief that this is just the beginning of an upward trend that could result in new highs for the cryptocurrency.
BitMEX Research added to the positive outlook by reporting that Spot Bitcoin ETFs saw a combined net inflow of $15.7 million on March 25. This follows a series of negative flows recorded by these funds throughout the previous week.
As of the time of writing, Bitcoin is trading around $70,700, representing an increase of over 5% in the past 24 hours, according to data from CoinMarketCap. With the potential for continued growth and new ATHs, all eyes are on Bitcoin’s next moves.
Analyst comment
Positive news.
As an analyst, it is likely that the market will see increased bullish momentum with Bitcoin reaching new all-time highs in the near future. The decrease in Bitcoin holdings on Coinbase indicates a shift in investor behavior towards long-term holding, further supporting the speculation of a $75,000 ATH.
