41,000 Bitcoins transferred to Coinbase Pro in an hour: should you worry?

After another week of bitcoin consolidation, with a pullback to $ 31,000, investors await the weekend for a sigh of relief as the unlocking of GBTC shares continues.

On-chain analysts have detected an unusually large inflow of 41,000 BTC on a few transactions in Coinbase Pro Exchange, in just an hour. Crypto Twitter’s immediate reaction was fear and calls for BTC to be “$ 20,000 or $ 10,000 BTC”.

It sounds like a bearish signal, but we have to recognize the fact that crypto exchanges are notorious for doing internal transfers. At around the same time, the chain analysis detected equally large outflows of 37,154 BTC from Coinbase Pro, as can be seen below:

Outflow and Inflow have the same number, which should be Coinbase’s internal wallet transfer. https://t.co/LOrM0vWWd4 pic.twitter.com/937nRELcTS

– Wu Blockchain (@WuBlockchain) July 17, 2021

If this was a one-sided event, it would have been an extremely bullish or bearish signal. Fortunately, the entries and exits were similar in quantity, making it very likely that this was an internal transfer by Coinbase Pro.

Aside from this strange event, the chain analysis did not detect any unusually high net flows in or out of other exchanges. It appears to be an isolated event.

During the last two weekends, liquidity is very low, making BTC susceptible to strong fluctuations up and down. A whale with over 40,000 BTC knows not to move such large amounts of BTC through exchanges because it will be detected and cause a “pre-sale” in anticipation of an upcoming sale.

At the moment, there is no major reason for concern, at least regarding these important entries and exits.