CryptoQuant CEO Analyzes Coinbase Whales’ Impact on Bitcoin Price Action
Bitcoin’s price trends have been impacted by Coinbase whales, according to CryptoQuant CEO Ki Young Ju, who observed a surge in Coinbase’s spot trading volume and a negative BTC premium on the exchange. Significant outflows from Bitcoin ETFs signal increased institutional selling pressure, while macroeconomic factors contribute to ongoing market uncertainty. Despite this, Ju remains optimistic about Bitcoin’s long-term prospects.
According to Ki Young Ju, the CEO of CryptoQuant, Bitcoin’s recent price fluctuations have been significantly impacted by whales on Coinbase. In a February 26 post on X, Ju highlighted that Coinbase’s share of total Bitcoin spot trading volume has surged above 30% recently. Concomitantly, the Coinbase BTC premium, which measures the price discrepancy between Bitcoin on Coinbase and other exchanges like Binance, remains negative, indicating that U.S. institutional investors are influencing both the ongoing bull market and the recent price corrections.
Moreover, on February 25, spot Bitcoin ETFs registered their highest single-day outflow amounting to $937.78 million, as reported by SoSoValue data. This outflow markedly eclipses the previous record of $680 million observed on December 19, 2024, reflecting increased selling pressure from institutional investors. Additionally, a report from 10x Research noted that only 44% of U.S. Bitcoin ETF inflows are intended for long-term holding, revealing that actual long-term demand for Bitcoin may be considerably less than what has been portrayed in media narratives.
The ongoing market retreat aligns with macroeconomic uncertainties, particularly following former U.S. President Donald Trump’s announcement of a planned 25% tariff on Canadian and Mexican imports set to start in March, which has amplified fears regarding inflation. Despite this correction, Mr. Ju maintains a long-term optimistic outlook for Bitcoin. In his February 19 post, he reiterated that Bitcoin’s bull cycle remains intact, emphasizing that past cycles have demonstrated price contractions of up to 30% from peak values without indicating the onset of a bear market.
In summary, the influence of Coinbase whales is pivotal in driving Bitcoin’s price dynamics, as highlighted by the notable increase in the exchange’s trading volume share. Furthermore, significant selling pressure from institutional investors and macroeconomic factors contribute to the current market volatility. Nonetheless, CryptoQuant’s CEO remains confident in Bitcoin’s long-term bullish trajectory, reflecting the asset’s historical resilience against market corrections.
Original Source: crypto.news
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