Bitcoin Back Above $30k As Coinbase Observes 38k BTC Outflows
On-chain data shows the crypto exchange Coinbase observed 38k BTC in outflows shortly before Bitcoin recovered back above $30k.
Bitcoin Netflow For Coinbase Pro Shows Deep Negative Spikes
As pointed out by an analyst in a CryptoQuant post, outflows from Coinbase Pro wallets measured to around 38k BTC yesterday.
The relevant metric here is the “netflow,” which measures the net amount of Bitcoin entering or exiting wallets of an exchange (which, in this case, is Coinbase Pro).
The indicator’s value is simply calculated by taking the difference between the inflows (that is, number of coins going in) and the outflows (number of coins going out).
When the value of the netflow is positive, it means a net number of coins are entering the exchange wallets right now.
Such a trend, when prolonged, can be bearish for the crypto’s price as investors usually deposit their coins to exchanges for selling purposes.
Related Reading | Octagon Networks; The First Cybersecurity Firm To Convert Balance Sheet To Bitcoin
On the other hand, a negative value of the indicator implies investors are withdrawing a net amount at the moment.
Naturally, these kind of values can be bullish for the coin’s value. Now, here is a chart that shows the trend in the Bitcoin netflows for Coinbase Pro over the last few days:
Looks like the value of the metric displayed negative values yesterday | Source: CryptoQuant
As you can see in the above graph, the Bitcoin netflow for Coinbase Pro observed some large negative spikes just yesterday.
These values amounted to around 38k BTC moving out of the exchange’s wallets, and the withdrawals occurred shortly before the crypto’s rebound back above the $30k level.
Related Reading | Bitcoin ATM Installations Notch Record Drop In May – Demand For Crypto Waning?
This suggests that buying on Coinbase Pro may have been one of the factors behind the latest pump in price of the coin.
At the time of writing, Bitcoin’s price floats around $30.1k, down 4% in the last seven days. Over the past month, the crypto has lost 14% in value.
The below chart shows the trend in the price of the coin over the last five days.
The value of the crypto seems to have come back above the $30k level | Source: BTCUSD on TradingView
A couple of days back, Bitcoin rode a sharp spike down as its value once again sank below $30k. However, it wasn’t long until the coin recovered back above the level.
Yesterday, the cryptocurrency once more found itself above $31k, but today the coin’s price has slumped down again.
Nonetheless, BTC is still above $30k, meaning not all of the recovery has been lost yet.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com