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Coinbase Bitcoin balance decreased by over 150k BTC since 2021

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  • Bitcoin balance on Coinbase has decreased by $8 billion since the beginning of 2021.
  • More of these were likely loved to external wallets for HODLing.

Many Bitcoin investors are becoming long-term holders or are playing by the rule “not your key, not your coin.” Data shared from Glassnode, a digital currency analytics platform, showed that a significant number of Bitcoin has been leaving Coinbase, a leading US-based cryptocurrency exchange, since the beginning of the year.

Less Bitcoin balance on all crypto exchanges is likely to set the BTC market in a bullish rally.

Coinbase’s Bitcoin balance reduced by nearly $8 billion

Coinbase Bitcoin balance decreased by over 150k BTC since 2021 5

Early January, the crypto exchange had a balance of over 970k BTC, according to Glassnode data. However, in less than three months, Coinbase‘s Bitcoin balance has decreased by over 150,000 BTC. This means about $8 billion in Bitcoin has been transferred off the exchange at today’s price of $53,678. It could be that Coinbase users may have withdrawn some BTC to other exchanges. However, it’s more likely to transfer to external wallets or cold wallets.

Amid the recent spike in the market value of Bitcoin, many investors had preferred moving their coins to external wallets for security reasons. For instance, millions of dollars in Bitcoin were transferred off the Coinbase exchange yesterday.

This becomes more evident as Bitcoin balance on all exchanges has been decreasing for months now, according to CryptoQuant. This is somewhat indicative that BTC investors are turning to long-term holders.

All exchange BTC reserve is dipping

From May 2020 till date, the number of Bitcoin had in all crypto exchanges decreased from as high as 2.9 million BTC to about 2.3 million BTC.

Coinbase Bitcoin balance decreased by over 150k BTC since 2021 6
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