- Bitcoin has seen two large outflows from Coinbase in the last week.
- There has been a corresponding spike in the exchange’s premium index.
On the 1st of April, Bitcoin [BTC] recorded its second-largest outflow from leading cryptocurrency exchange Coinbase, CryptoQuant’s data showed.
According to the data provider, on that day, 17,000 BTC worth around $1 billion was removed from the exchange. Earlier, on the 28th of March, outflow from Coinbase totaled 16,800 BTC.
High outflows from Coinbase often indicate large institutional investors moving significant amounts of their BTC holdings.
This can be for several reasons, such as investment diversification or allocation to other investment vehicles.
Sharing the same viewpoint, CryptoQuant’s analyst, Burak Kesmeci, noted that the recent spike in BTC outflows from Coinbase could be “related to institutional purchase or Spot ETF.”
Coinbase premium retraces
The large number of BTCs removed from Coinbase on the 1st of April coincided with a reversal in the coin’s Coinbase Premium Index (CPI).
On that day, the coin’s CPI, poised to fall again into negative territory, changed its course and trended upward.
Source: CryptoQuant
This metric measures the difference between BTC’s prices on Coinbase and Binance. When its value grows, it suggests significant buying activity by US-based investors on Coinbase.
Conversely, when it declines and dips into the negative territory, it signals less trading activity on the US-based exchange. At press time, BTC’s CPI was 0.045.
Between the 31st of March and the 1st of April, this climbed by over 250%.
Confirming a resurgence in activity from U.S.-based coin holders, BTC’s Coinbase Premium Gap also increased by over 200% during the 24-hour period.
Although the Asian markets followed a similar trend during the window period under review, an assessment of BTC’s Korean Premium Index (KPI) showed that it has remained positive in 2024 despite multiple pullbacks.
At press time, BTC’s KPI was 6.68.
Source: CryptoQuant
Read Bitcoin’s [BTC] Price Prediction 2024-25
This metric measures BTC’s price gap between South Korean exchanges and other global exchanges.
When the index’s value is positive, it suggests increased demand for Bitcoin within the South Korean market relative to different markets.