{"id":252467,"date":"2021-05-18T14:43:17","date_gmt":"2021-05-18T11:43:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoins-drop-from-64k-comparable-to-black-thursday-but-coinbase-outflows-hint-at-accumulation\/"},"modified":"2021-05-18T14:43:17","modified_gmt":"2021-05-18T11:43:17","slug":"bitcoins-drop-from-64k-comparable-to-black-thursday-but-coinbase-outflows-hint-at-accumulation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoins-drop-from-64k-comparable-to-black-thursday-but-coinbase-outflows-hint-at-accumulation\/","title":{"rendered":"# Bitcoin\u2019s drop from $64K comparable to Black Thursday, but Coinbase outflows hint at accumulation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40f8f6641dc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40f8f6641dc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoins-drop-from-64k-comparable-to-black-thursday-but-coinbase-outflows-hint-at-accumulation\/#Institutional_versus_retail_sentiment\" >Institutional versus retail sentiment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoins-drop-from-64k-comparable-to-black-thursday-but-coinbase-outflows-hint-at-accumulation\/#Still_bullish\" >Still bullish<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin\u2019s drop from $64K comparable to Black Thursday, but Coinbase outflows hint at accumulation <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Elon Musk and COVID-19 have something in common: They have both panicked investors \u2014 at least once \u2014 into dumping their Bitcoin (BTC) holdings.<\/p>\n<p>The similarities notched up higher in the previous six days as Musk doubled down on his chaos-inducing perspective toward Bitcoin. The billionaire entrepreneur engaged in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> spat with top cryptocurrency advocates over the weekend, including podcaster Peter McCormick, as he projected his favorite token, Dogecoin (DOGE), as superior to Bitcoin.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Obnoxious threads like this make me want to go all in on Doge<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1393979913624072194?ref_src=twsrc%5Etfw\">May 16, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>At one point in time, Musk almost admitted that he would have Tesla unload the $1.5 billion investment that it had made in Bitcoin in February. Meanwhile, the bids for the flagship cryptocurrency kept on declining with each of Musk\u2019s tweets. First, they went to $50,000, then sub-$45,000, eventually to bottom-out near $42,000.<\/p>\n<p>Musk later clarified that Tesla has not dumped its bitcoin holdings.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">To clarify speculation, Tesla has not sold any Bitcoin<\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1394170030741413888?ref_src=twsrc%5Etfw\">May 17, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>But his clarification did little in offsetting Bitcoin\u2019s downside bias. The cryptocurrency eventually extended its bearish correction to more than 35% when measured from its all-time high of nearly $65,000. <\/p>\n<p>That also marked one of the quickest and deepest top-to-bottom retracement moves in the cryptocurrency\u2019s recent history, with on-chain indicators showing that its impact on the market bias was as bad as the one caused by the Black Thursday crash in March 2020 in the wake of the coronavirus pandemic.<\/p>\n<p>Meanwhile, blockchain analytics platform Glassnode <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/glassnodealerts\/status\/1394532573859168256\">reported<\/a> a decline in the profits of Bitcoin\u2019s circulating supply via its proprietary metric. <\/p>\n<p>The \u201cBTC Percent Supply in Profit (7d MA)\u201d showed readings near 81.122 as of London morning on Tuesday, its lowest level since October 2020. The readings were also weak during the March 2020 crash, wherein Bitcoin declined by more than 50%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/6a748a76-f27b-4d36-92d3-a76161f97d3c.jpeg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Percentage of circulating supply in profit on a 7-day average timeframe. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>More on-chain indicators point out similar readings between the current, Musk-led Bitcoin price crash and the one that <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared amid the coronavirus panic in March 2020. <\/p>\n<p>For instance, the Bitcoin transfer volume tracker at Glassnode <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-20-2021\/\">showed<\/a> a spike in BTC inflow across all the exchanges. Its scale was comparable to the inflows seen during the March 2020 sell-off and the distribution by the PlusToken Ponzi scheme in 2019.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/93ab02c7-143d-4916-b283-756c485a78d3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin Net Transfer Volume from\/to crypto exchanges. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>A higher BTC inflow indicates a higher probability of traders selling those tokens for other assets, including fiat and altcoins. Conversely, a higher outflow shows traders\u2019 willingness to hold BTC for longer periods.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Institutional_versus_retail_sentiment\"><\/span>Institutional versus retail sentiment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Glassnode\u2019s Bitcoin transfer volume data, meanwhile, provided two stark investment perspectives between retail and institutions. In its weekly <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>letter, the analytics platform broke down its observation based on the inflow\/outflow data collected from two of the world\u2019s largest cryptocurrency exchanges: Binance and Coinbase.<\/p>\n<p>Binance is a non-United States entity that attracts mostly retail traders and investors around the world. Meanwhile, Coinbase\u2019s standing is higher among U.S.-based institutional investors. Glassnode noted that Binance was the biggest receiver of the Bitcoin inflows during the Musk-led market crash.<\/p>\n<p>\u201cThis provides further indication that the recent inflows are likely to be driven by both new market entrants (panic sellers) and potentially due to capital rotation into other crypto-assets,\u201d wrote Glassnode in a weekly note.<\/p>\n<p>Ki Young Ju, CEO of CryptoQuant \u2014 a South Korea-based blockchain analytics platform \u2014 also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1394190262587387905?s=20\">noted<\/a> that most BTC inflows went to Binance, adding that it is not necessarily a bearish signal.<\/p>\n<p>\u201cI\u2019m going to wait until the inflow signal cools off,\u201d he added, nonetheless.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/9b4bd2d6-711a-4e3d-adc5-c5da7787a4e3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin Net Transfer Volumes from\/to Binance. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>On the other hand, Coinbase has logged higher new Bitcoin outflows ever since the cryptocurrency broke above the $20,000-price milestone last year. The trend continued even in the current week, showing that institutional investors were absorbing the retail market\u2019s selling pressure.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/359cda9d-b290-41e8-bad7-bd0b854ef76f.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin balance on all exchanges vs. Coinbase vs. Binance. Source: Bybt.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Still_bullish\"><\/span>Still bullish<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In other words, rich investors purchased Bitcoin at local lows as average ones sold them under the influence of Musk.\u00a0<\/p>\n<p>\u201cDon\u2019t listen to what they say,\u201d said early-stage investor Anthony Pompliano in his note to clients on Monday. He added:<\/p>\n<blockquote><p>\u201cJust watch what they do with their money. Elon Musk and Tesla understand that they are going to be dependent on bitcoin moving forward. It wouldn\u2019t surprise me if they are actually buying more bitcoin now at depressed prices or at least plan to purchase more in the future.\u201d<\/p><\/blockquote>\n<p>Pompliano added that Bitcoin remains the best-performing macro asset, an \u201capex predator\u201d with vastly outperformed stocks, bonds, real estate and commodities. Twitter CEO Jack Dorsey, whose payment company Square added Bitcoin to its balance sheet to beat inflation fears, also noted on Friday that his team would \u201cforever work\u201d to make Bitcoin better.<\/p>\n<p>The comments came in contrast to Musk\u2019s support for Dogecoin. Veteran investor Paul Santos <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seekingalpha.com\/article\/4429442-tesla-dogecoin-and-bitcoin-mysteries-untold\">wrote<\/a>\u00a0in his Seeking Alpha piece\u00a0that the Tesla CEO might want to make money out of thin air by exploiting the so-called cryptocurrency euphoria.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-s-drop-from-64k-comparable-to-black-thursday-but-coinbase-outflows-hint-at-accumulation\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin\u2019s drop from $64K comparable to Black Thursday, but Coinbase outflows hint at accumulation &#8221; Elon Musk and COVID-19 have something in common: They have both panicked investors \u2014 at least once \u2014 into dumping their Bitcoin (BTC) holdings. The similarities notched up higher in the previous six days as Musk doubled down on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":252468,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvMzJhMTE3N2UtZDIwOC00YjA4LWFkOWUtZTIwMjNiYzJjNWJmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75014,74862,81951,90959,74937,74982,74956,86883,74939,39394,73785],"class_list":["post-252467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-binance","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-news","tag-bitcoin-price","tag-btc-markets","tag-coinbase","tag-dogecoin","tag-market-analysis","tag-elon-musk","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/252467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=252467"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/252467\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/252468"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=252467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=252467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=252467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}