Should You Be Concerned About 41,000 Bitcoin Transferred to Coinbase Pro in One Hour?

Investors are looking forward to the weekend as the GBTC shares unlock after another week of consolidation for bitcoin, dropping to $31k.

On-chain researchers discovered a huge influx of 41,000 BTC into Coinbase Pro Exchange over a few transactions in just one hour. Fear reigned supreme on Crypto Twitter, with demands for BTC to reach $20k or $10k.

Although this appears to be a pessimistic indication, we must keep in mind that crypto exchanges are known to conduct internal transfers. On-chain Analysis identified comparable significant withdrawals of 37,154 BTC from Coinbase Pro around the same period, as seen below:

This would have been a very bullish or bearish indication if it had been a one-sided event. Thankfully, the inflows and outflows were almost equal in size, indicating that this was most likely an internal Coinbase Pro transfer.

Aside from this unique occurrence, On-chain Analysis found no exceptionally high net flows into or out of other exchanges. Again, this looks to be a one-time occurrence.

Liquidity has been relatively low over the previous couple of weekends, putting BTC vulnerable to big swings up and down. A whale with more than 40K BTC knows not to move such vast sums of BTC into exchanges since it will be noticed and result in “pre-selling” in anticipation of a sell-off.

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