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Bitcoin’s latest $1 billion exodus from Coinbase (COIN) delivered a massive and unexpected shock to the crypto market on May 9. The sheer scale of the move stunned analysts because large institutional players usually spread their purchases over time to avoid moving the market. Instead, 9,739 Bitcoin flowed out of Coinbase in a single day, valued at more than $1 billion. That was the highest daily outflow recorded this year according to Bitwise head of European research André Dragosch in a post on May 13. It was not just a normal dip. It was a clear sign that big-money players are stocking up fast.
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Coinbase BTC Outflows Trigger Talk Of Institutional Buying
The timing could not have been better for Bitcoin bulls. The massive withdrawal came as Bitcoin hovered around $103,600. It also came days after a surprise announcement from the White House. A 90-day reduction in reciprocal tariffs between the U.S. and China gave markets a much-needed sigh of relief.
Nansen principal research analyst Aurelie Barthere explained to Cointelegraph that the pause removes the risk of what she called “sudden re-escalation.” That could fuel a rally not only for Bitcoin but also for altcoins and stocks.
Dragosch called it bluntly in his post. “Institutional appetite for Bitcoin is accelerating,” he said.
Corporate Bitcoin Buying Hints At Potential Supply Shock
The size of the outflows has analysts warning of something bigger on the horizon. Dragosch told Cointelegraph on May 12 that corporate buyers alone have snapped up four times more Bitcoin this year than all U.S. spot Bitcoin ETFs combined. “We’re close to 200,000 Bitcoin already, which is the annual supply of new Bitcoin,” he said.
That kind of demand could trigger a classic crypto supply shock. When the number of coins available to buy dries up and demand stays high, prices can move sharply.
Even with the optimism, Dragosch warned the market could still see short-term pullbacks. He said the market remains “overheated” in the near term.
Bitcoin Illiquid Supply Hits Record as Accumulation Continues
The big money is clearly not waiting. According to Glassnode data, Bitcoin’s illiquid supply hit a record 14 million BTC. That shows large investors are quietly hoarding coins and taking them off the market.
If history is any guide, the signs are stacking up for something big ahead. At the time of writing, Bitcoin is sitting at $104,051.
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