Coinbase Bitcoin Balance Hits Nearly 4-Year Low
Bitcoin, the largest cryptocurrency by market cap, has managed to rise more than 50% since its notorious sell-off in May. In fact, Bitcoin is less than $20,000 away from its historic high. Yet, other on-chain metrics suggest a sideways market in the month of September.
Coinbase BTC Supply Plunges to 2017 Levels
With the week ending August 27, Bitcoin witnessed its 8th consecutive week of outflows, according to blockchain analysis firm CoinShares. Last week alone, $3.8 million worth of Bitcoin departed from crypto exchanges.
As of early August, only 13.2% of Bitcoin’s circulating supply was available on cryptocurrency exchanges. However, data by CryptoQuant reveals that currently, just over 2.4 million Bitcoin is available on crypto exchanges, which accounts for 2.77% of Bitcoin’s total circulating supply.
The recent reduction of BTC held on centralized exchanges should come as no surprise since the leading cryptocurrency has been in accumulation lately. Data by CoinShares reveals that Bitcoin saw outflows in 14 of the last 16 weeks, as $650 million worth of BTC was withdrawn during this period.
Notably, a large portion of the recent accumulation took place via Coinbase, which has resulted in the exchange’s Bitcoin balance dropping to 4-years low levels. Data by Glassnode reveals that Coinbase currently holds just over 700,000 BTC, a level last seen in December 2017.
Coinbase is the most popular crypto exchange in the United States. Arguably, the fact that more Bitcoin is withdrawn from the exchange is an indication that more US investors are accumulating Bitcoin. This can be part of the larger trend where large VCs, Pension Funds, and other big players in the US continue to pour billions into crypto firms and products.
Will Bitcoin Break $50k in September?
Despite the recent accumulation that saw Coinbase’s Bitcoin balance plunging to 2017 levels, market sentiments are not in favor of an imminent bull run.
The Bitcoin market was consolidating this past week. Prices traded within a weekly high of over $49,500 and a weekly low of around $46,500, according to data by Coinmarketcap.
A number of investors predict that September will continue to see Bitcoin consolidating within a tight range, seldom increasing by more than 6%.
Historically, Bitcoin tends to perform very poorly in the month of September. Studying data from the past, it turns out that Bitcoin finished September in the red zone over 70% of the time.
Nevertheless, it is worth mentioning that the recent supply shock could eventually provide Bitcoin with enough momentum to initiate another bull run beyond $50k.
Meanwhile, altcoins led by Ethereum continue to perform well. While Bitcoin has lost 0.5% in the last 24 hours, Ethereum has gained over 3% in the same period.
Do you think Bitcoin will manage to prevent extended losses in September? Let us know in the comments below.