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Date: 2025-02-26 08:21:41
Bitcoin's recent price fluctuations have been significantly swayed by Coinbase whales, as per CryptoQuant CEO Ki Young Ju.
In a post on Feb. 26, Ju highlighted that Coinbase's spot volume dominance, which indicates the proportion of overall Bitcoin (BTC) spot trading volume happening on the exchange, had spiked beyond 30% in the previous week.
Simultaneously, the Coinbase BTC premium, which monitors the price disparity between Bitcoin on Coinbase and other exchanges such as Binance, remained negative. This implies that U.S. investors, particularly institutional ones, are responsible for both the bull market and the recent correction.
Coinbase whale(s) are influencing BTC price movements. Spot volume dominance +30% in 7 days, CB premium negative. pic.twitter.com/6hszgLw9iY
Concurrently with whale activities on Coinbase, spot Bitcoin ETFs witnessed their biggest single-day outflow since inception, with $937.78 million exiting on Feb. 25, as per SoSoValue data. This amount greatly exceeded the previous record of $680 million in outflows on Dec. 19, 2024, indicating heightened selling pressure from institutional investors.
Meanwhile, a Feb. 25 report by 10x Research revealed that only 44% of U.S. Bitcoin ETF inflows are intended for long-term holding, while the rest are likely associated with arbitrage tactics. This suggests that actual long-term demand for Bitcoin as an asset in multi-asset portfolios may be significantly lower than what media narratives imply.
The ongoing market downturn has primarily been instigated by macroeconomic factors that have contributed to market instability. Former U.S. President Donald Trump's proposed 25% tariffs on Canadian and Mexican imports are scheduled to go into effect in March, sparking concerns about potential inflation.
Despite the correction, CryptoQuant's CEO maintains a long-term bullish outlook. In a Feb. 19 post, he argued that Bitcoin's bull cycle is still ongoing, noting that past cycles have experienced price drops of up to 30% from all-time highs without indicating a bear market.
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