Fun Fact - If BTC keeps leaving Coinbase at this rate, they will have exactly Zero BTC 454 days from now
Yesterday I was clever, so I thought I would change the world. Today I am wise, so I think I will change myself
Nothing like a good ol fashion Persian Poet quote to start off the day.
We all know bitcoin has been leaving exchanges pretty consistently for months and months now, but what happens if this trend continues?
I'm glad you asked!
Just looking at Coinbase specifically, if the amount of bitcoin leaving the exchange were to continue at this rate, on average, they would run out of bitcoin in a little over a year.
Specifically, they would run out of bitcoin in 454 days.
Check out the chart:
In less than 5 months, Coinbase has 'lost' roughly 25% of their bitcoin.
The neat thing is that this isn't just Coinbase.
Many exchanges have seen draw-downs in their bitcoin balances.
I believe this is being orchestrated by large institutions with the intent of causing a supply squeeze.
Michael Saylor and co are buying every bitcoin they can get their hands on and I know several others are doing the same thing.
Can you say Hunt Brothers?
The result will be a massive move higher in the price of bitcoin until it gets to a price where people are happy unloading some of their bitcoin.
Apparently $60k isn't that price point yet.