- Coinbase has burned $4.7 billion USDC converting the stablecoin to fiat in response to the actions of US regulators.
- $330 USDC million were burned within a 24-hour period.
- Bitcoin whales are sending BTC back to exchanges while retail investors pull their holdings out of crypto platforms.
Coinbase, one of the largest cryptocurrency exchanges, witnessed a massive increase in the volume of USDC burned on its platform.
A wallet address burned - meaning converted $4.7 billion USDC to fiat - amidst rising uncertainty in crypto, after the SEC leveled charges against Kraken.
Coinbase witnesses panic selling, crypto traders burn $4.7 billion USDC for fiat
PeckShield, a blockchain intelligence firm, alerted crypto market participants of the $4.7 billion USDC burn which happened on Coinbase, within the last 24 hours.
Coinbase burns $4.7 billion USDC in a 24-hour period
Colin Wu, a Chinese reporter noted the move by crypto traders on Coinbase and interpreted this as “panic selling” caused by the actions of US regulators. US financial regulator, the Securities and Exchange Commission, charged cryptocurrency exchange platform Kraken for its crypto staking-as-a-service product.
The exchange settled for $30 million, while fear, uncertainty and doubt about the future of crypto staking and liquid staking platforms prevails. Crypto market participants exchanged their stablecoins for fiat, in a risk averse move, in the face of increasing regulatory crackdown in the US.
Why Bitcoin whales are sending BTC to exchanges, is this a sell signal?
Bitcoin’s large wallet investors who hold over 1,000 BTC are beginning to move the asset back onto centralized exchanges. The trend has picked up pace among whales, while small investors remove their BTC from exchanges.
BTC whale position change
When BTC leaves exchanges, it is considered bullish, while the opposite is bearish. On-chain activity interprets that both large and small investors have vastly opposite interpretations of where BTC price is headed. The former is pessimistic and the latter optimistic about a BTC price rally.
It is likely that whales are managing their downside risk, shedding their holdings before BTC price declines further.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Why is Bitcoin performing better than Ethereum? ETH lags as BTC smashes new all-time high records
Bitcoin has outperformed Ethereum in the past two years, setting new highs while the top altcoin struggles to catch up with speed. Several experts exclusively revealed to FXStreet that Ethereum needs global recognition, a stronger narrative and increased on-chain activity for the tide to shift in its favor.
Ethereum Price Forecast: ETH could see a decline as on-chain and derivatives data paint bearish picture
Ethereum (ETH) declined below $3,100 on Tuesday as market sentiment surrounding the top altcoin is turning bearish. On-chain data reveals that investors are potentially withdrawing and putting sell pressure on exchanges.
Coinbase set to delist WBTC amid cbBTC expansion
Coinbase announced via an X post on Tuesday that it will suspend WBTC trading across all its platforms on December 19. Meanwhile, the exchange also revealed that its wrapped Bitcoin token, cbBTC, launched on Arbitrum earlier today.
Dogecoin Price Forecast: Selling pressure drops 95% as DOGE traders target $0.50 breakout
The Dogecoin price breached the $0.40 resistance on Monday, rebounding from a 15% pullback. On-chain transaction flows observed this week suggest DOGE could be on the verge of another leg-up toward $0.50.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.