Massive Coinbase Outflow Signals Institutional Interest in Bitcoin Despite Price Drop

Bitcoin [BTC] has experienced significant major price fluctuations in the past day, primarily influenced by the Federal Open Market Committee (FOMC) meeting outcomes and Federal Reserve Chair Jerome Powell’s speech.

output: As Bitcoin’s (BTC) price continues to experience major fluctuations, analysts have been closely monitoring institutional activity and its impact on market trends. A new report from CryptoQuant analyst Burak Kesmeci highlights a significant development in Bitcoin’s market dynamics.

According to Kesmeci, a record-breaking Bitcoin outflow was observed on Coinbase during the FOMC announcement. Within just one hour, approximately 10,756 BTC, valued at $1.1 billion, were withdrawn from the exchange.

The transaction occurred in two major blocks: one involving 8,093 BTC and the other 2,557 BTC. This substantial outflow strongly suggests institutional buying or intermediary purchases likely linked to Spot ETF demand—a pattern that aligns with similar institutional activity over the past year.

Kesmeci emphasized the growing role of institutional investors in Bitcoin’s market structure. He noted,

“U.S. investors continue to accumulate Bitcoin relentlessly, undeterred by price fluctuations or market downtrends.”

The analyst mentioned that these significant transactions underscore the influence of institutions like RIOT and MARA in driving market momentum, particularly during critical events like interest rate announcements.

Meanwhile, other key metrics reveal a mixed outlook for Bitcoin’s immediate future. Data from Coinglass shows a 0.90% decrease in Bitcoin’s open interest, now valued at $68.14 billion. However, Bitcoin’s open interest volume has surged by 36%, reaching $148.57 billion—a sign of heightened trading activity.

Another important metric, the MVRV (Market Value to Realized Value) ratio, has also seen notable changes. The MVRV ratio measures whether Bitcoin is overvalued or undervalued based on its current market price relative to its realized price.

A ratio above 1 generally indicates profitability for holders, while higher values suggest potential overvaluation. Bitcoin’s MVRV ratio recently climbed to 2.69 but has since fallen to 2.52 following the price drop. This decline suggests a cooling market sentiment, with traders potentially reassessing their positions in the short term.