Whales Are Back: Coinbase OTC Trades Mark Massive Inflows

Institutional inflows into Coinbase surge, signaling increased OTC activity and Bitcoin accumulation, while exchange reserves hit a 7-year low.

Whales flying around in a desert

Institutional capital inflows into Coinbase Prime have surged ahead of President Donald Trump’s inauguration On January 20, with hedge funds, family offices, and large investors leading the charge.

OTC Activity Spikes

CryptoQuant reported today on its X account that significant capital inflows into the Coinbase exchange surged this week.

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Institutional clients, mainly using Coinbase Prime Brokerage Services, deposited around $13 billion in capital into the US’s biggest crypto exchange.

Institutional client activity accordingly spiked, with CryptoQuant recording over 140,000 active clients this week.

The increased inflows to Coinbase Prime point to higher over-the-counter (OTC) trading activity, with CryptoQuant noting that this is a preferred Bitcoin accumulation method for US institutions.

โ€œWhen the whales move, the market feels it,โ€ the message noted.

Bitcoin Balance on Exchanges Hit 7-Year Low

Meanwhile, Bitcoin reserves on crypto exchanges have reached their lowest level in seven years.

CryptoQuant data shows that on January 9, when Bitcoin’s price fell to $92.5K, BTC reserves on exchanges dropped to 2.395 million.

Bitcoin reserves on crypto exchanges reached the lowest point on January 9. Source: CryptoQuant

 Currently, just over 2.402 million Bitcoins remain available across cryptocurrency trading platforms.

Over the past week, Bitcoin price increased by more than 7.3%, with the world’s largest crypto surpassing the $100K mark again and reaching $102K on Friday. As of this writing, Bitcoin is trading at a price slightly above $101.95, according to CoinMarketCap.

Why This Matters

The surge in institutional capital and OTC trading signals growing confidence in Bitcoin. With exchange reserves at a seven-year low, the tightening supply could indicate upward price pressure, suggesting a potentially bullish outlook for Bitcoin.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Simona Ram

Simona Ram is the senior journalist at DailyCoin, focusing on in-depth investigations of the cryptocurrency sector. Simona has minor holdings in Bitcoin.

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