Recent Bitcoin (BTC) outflows from Coinbase are reminiscent of the "proof-of-keys" days and could exist a sign of a bullish future, co-ordinate to CryptoQuant CEO Ki Young Ju.

Data from the cryptocurrency assay firm shows that more than 15,200 BTC, currently worth over $515 million, were withdrawn from Coinbase on Jan. 31.

BTC outflows from Coinbase. Source: CryptoQuant

According to Ki Young Ju, the withdrawal "went to custody wallets that but take in-going transactions," and was likely an "OTC bargain from institutional investors" based on several identifiers.

He as well pointed to the fact that the separate of a xv,000 BTC wallet into wallets containing i,000-5,000 BTC increases security costs. Furthermore, most of the internal transfers are done with circular amounts, like 1,000 to 5,000 Bitcoin, while this transfer included odd groupings of one,265, ii,391, and 1,957 BTC.

As to why Coinbase outflows are a bullish sign for the meridian cryptocurrency, Ki Young Ju linked to a previous tweet from Dec. 18 which states that "if Coinbase moves a pregnant amount of Bitcoins to other cold wallets, it indicates OTC deals" which are non-exchange transactions.

He said:

"Since the toll is somewhen determined on exchanges, massive not-exchange transaction volume is considered as a bullish signal. These transactions include OTC deals."
BTC/USDT 4-hr nautical chart. Source: TradingView

The slow arrival of institutions into the cryptocurrency sector is helping to increment the legitimacy of the crypto sector as a whole and appears to be providing a sure level of support for the price of BTC equally the available supply continues to be locked away in cold custodial wallets.

While the media were pointing to Bitcoin's price drop from $42,000 to below $xxx,000 as a sign that the BTC bubble had popped in one case again, the purchase of 4,000 BTC on Feb.ane indicates that institutions accept instead seen this as an opportunity to purchase the dip and are taking full advantage of this buying opportunity.