The amount of bitcoin on the cryptocurrency exchange Coinbase has fallen to its lowest level in nine years, as users move a significant portion of their funds off the platform.
According to a report by CryptoQuanta, whales have transferred 18,000 bitcoins worth nearly a billion dollars from Coinbase over the weekend, with transfer values ranging from 45 to 171 million dollars. Coinbase’s order book now contains about 394,000 bitcoins, estimated at 20.5 billion dollars.
The move by whales transferring their bitcoin from centralized exchanges is seen as a positive sign as less bitcoin is available for sale. However, users on social media are divided about the nature of the transfer.
Some believe that the funds are being moved to custodial wallets in anticipation of price increases, while others believe that the transferred funds could be used for liquidity purposes for OTC (over-the-counter) trading.
With each halving, the amount of new bitcoins entering the market is halved, creating a supply shortage as demand increases. The next halving will occur in April at block 740,000. The reward for each block will decrease from 6.25 to 3.125 bitcoins.
