Investors Accumulate Bitcoin After Sale Reports of Coinbase Analytics

  • According to the on-chain market intelligence firm Glassnode Alerts, Bitcoin balance on crypto exchanges reached a 12-month low of 2,310,466.600 BTC indicating that investors are gathering Bitcoin (BTC).
  • On June 6, Coinbase plans to sell its blockchain intelligence venture Coinbase Analytics to IRS reported by media outlets.
  • Unlike other regulated exchanges, Coinbase holds a strict know your customer (KYC) policies in the US.

According to the on-chain market intelligence firm Glassnode Alerts, Bitcoin balance on crypto exchanges reached a 12-month low of 2,310,466.600 BTC. This indicates that investors are gathering Bitcoin (BTC). 

Furthermore, Glassnode researchers shared in a tweet saying, BTC balance on the exchange just tumbled a 1-year low.

Coinbase to sell its Coinbase Analytics

Several media sources reported that the leading exchange is in plans to sell its blockchain intelligence venture Coinbase Analytics, on June 6. The latter may be sold to the Drug Enforcement Agency (DEA) and the Internal Revenue Service (IRS).

However, following the information, investors started accumulating Bitcoin resulting in a surge in its outflow from the exchange.  The increase in BTC outflows reported worry among investors. They are apprehensive that the deal could endanger their user data.

Coinbase exchange has a strict know your customer (KYC) policies in the US, unlike other regulated exchanges. Besides this, Coinbase Analytics does not possess any data of the users. It operates through a publically available data, as clarified by Coinbase.

Moreover, this explanation by Coinbase could not stop high BTC outflow from the exchange. As per Whale Alert, several million-dollar transactions were reported shifting from the exchange’s wallet to some anonymous wallets.

Bitcoin to Set up a Bullish Scenario in Future

Additionally, some market speculators believe that increase in withdrawals of BTC from crypto exchanges is a sign of positive matric.

Usually, when BTC enters an accumulation state, the exchange reserves drop. At the beginning of 2019, the price of BTC was somewhat around $4,000. While it started increasing gradually to $14,000 the exchange balance dropped significantly.

Thus, if the exchange reserve does not climb upward in the near future, there will be a probability for  BTC to set a multi-layer bull market.

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Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.

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