CryptoQuant, a leading analytics platform, has offered valuable insights into the current state of the Bitcoin market. In a recent X post, the platform highlighted that a substantial amount of Bitcoin has been pulled out from Coinbase, with 4,594 BTC being transferred to spot exchanges. This is expected to greatly alter the crypto market and its dynamics to a more substantial degree.
At the moment, the spot exchange data depict a $4,594 Bitcoin inflow and this might contribute to short-term selling pressure. Still, the dependency on this information could be misleading as the position of Spot ETFs is steadily gaining importance. CryptoQuant helps to understand that the current battle between Asia and the USA is a more complex affair than simple market dominance.
Major Coinbase Bitcoin Outflows
Regarding Coinbase, based on the NetFlow data, there are two strong signals of Bitcoin outflows in the last 48 hours. There was a net outflow of 3,067 BTC on June 4th and another 3,734 BTC outflow on June from Bitstamp on June 5th. These large outflows combined amount to a staggering $500 million which can be considered relatively significant in the context of the Spot ETFs. Surprisingly, the investment made an income of $886. Institutional buying could be on the rise as $6 million was invested in Spot ETFs yesterday.
According to platform insights, organizations have to hold Bitcoin for their clients, and Coinbase is the primary solution to this, other than Fidelity. This institutional buying can be noted from the positive reading of the Coinbase Premium Index on both the hourly and the daily scale indicating strong buyer activity in the USA. This trend demonstrates that Spot ETFs are the most popular instruments of the bull market cycle of the present.
Thus, as of June 5th, Bitcoin Spot ETFs AUM has already reached $1 billion. Therefore, if such volumes are sustained as is expected, then the rally that is being fueled by ETFs will persist and bitcoin will trend towards new record highs.
Spot ETFs Drive Bitcoin Bull Market
When analyzing the flows, one can see that there are constant large inflows and outflows, which means that the current market of Bitcoin is highly active. This means that Spot ETFs have been instrumental in the recent bullish trend given that there is high trading volume around them. This indicates a very high level of institutional trading especially from the US and it can be deduced that Spot ETFs are playing a crucial role in the ongoing bull market.
The data from CryptoQuant is useful in analyzing the trends with regards to the market and from the current trends, it can be deduced that Bitcoin is setting up for a new surge. How Coinbase outflows and Spot ETF inflows are correlated will be the determining factor of the next phase of the market. Thus, as more and more institutions are integrating bitcoins into their operations, the asset price is bound to remain more volatile and can still skyrocket in the coming days.