Institutional Demand Grows as Bitcoin Experiences Significant Coinbase Outflow

Bitcoin is nearing its record high of $111,980 with a notable outflow of 7,883 BTC from Coinbase, suggesting strong institution interest. Previous outflows often correlate with ETF movements, further supporting this narrative. Analyst predictions hint at potential growth for Bitcoin prices, possibly breaking new records soon.

Bitcoin (BTC) has recently seen quite an impressive trading spree, approaching its record high of $111,980. Latest movements on significant cryptocurrency exchanges hint that institutional investors might be ramping up their BTC acquisitions. A standout incident was Coinbase, the top US-based crypto exchange, logging a net outflow of 7,883 BTC, stirring speculations around renewed institutional interest and a possible continuation of the price rally ahead.

Analyzing data from a recent CryptoQuant Quicktake post penned by contributor burakkemeci, Coinbase noted an outflow of 8,742 BTC on May 26. After deducting BTC deposits, the net outflow totals 7,883 BTC. This marks the third-largest single-day BTC exodus from the exchange in a month. For clarity, daily BTC outflow encompasses all Bitcoin withdrawn from the platform in one day, while net outflow tracks the difference between withdrawals and deposits. A positive net outflow typically means more BTC exited the exchange than entered—a clear sign of accumulation.

Historically, notable BTC outflows from Coinbase often precede announcements from institutions or inflows into spot Bitcoin exchange-traded funds (ETFs). Given that nearly every US-listed spot Bitcoin ETF—Fidelity’s aside—gets its BTC from Coinbase, the sheer volume of this transaction indicates potential involvement from ETF operations or major corporate buyouts. A front-runner in this scenario might be Strategy, helmed by Michael Saylor. The firm recently reported acquiring 7,390 BTC, boosting its total asset to a whopping 576,230 BTC, and Saylor has teased another major purchase. It remains to be seen if the latest Coinbase outflows tie back to this.

Further backing this institutional theory is the Coinbase Premium Index, which has consistently shown a positive trend over the prior month. This indicator typically signals heightened buying interest from US investors and is often associated with institutional demand. An analyst underscored the significance: these outflows represent enduring demand from US institutions. If their interest does persist, this could pave the way for another surge in Bitcoin prices. Coupling this with potential ETF inflows can lead to sharp price shifts and possibly new peaks.

Where does that put Bitcoin’s future? As of now, Bitcoin sits at $109,589, slightly below its all-time high by 1.9%. However, various on-chain metrics and technical signals suggest that Bitcoin could very well breach into new heights soon.

In fact, CryptoQuant contributor ibrahimcosar pointed out that Bitcoin appears to be honing in on the $112,000 threshold after establishing a double bottom pattern on the hourly chart. Additionally, the Bitcoin Spot Taker Cumulative Volume Delta (CVD) has shifted back to positive, hinting at bullish momentum returning. There’s also notable data indicating that current holders aren’t rushing to offload their assets despite significant unrealized profits, reflecting their confidence in further price growth. At present, BTC is at $109,589, experiencing a minor 0.3% drop over the last day.