Bitcoin’s recent price action has been heavily influenced by whales on Coinbase, according to CryptoQuant CEO Ki Young Ju.
In a Feb. 26 post on X, Ju noted that Coinbase’s spot volume dominance, which refers to the share of total Bitcoin (BTC) spot trading volume occurring on the exchange, had surged above 30% in the past week.
At the same time, the Coinbase BTC premium, which tracks the price difference between Bitcoin on Coinbase and other exchanges like Binance, remained negative. This suggests that U.S. investors, particularly institutional ones, are driving both the bull market and the recent correction.
Coinciding with whale activities on Coinbase, spot Bitcoin ETFs recorded their largest single-day outflow since launch, with $937.78 million exiting on Feb. 25, according to SoSoValue data. This figure far surpassed the previous record of $680 million in outflows on Dec. 19, 2024, signaling increased selling pressure from institutional investors.
Meanwhile, 10x Research’s Feb. 25 report pointed out that only 44% of U.S. Bitcoin ETF inflows are for long-term holding, while the rest are likely tied to arbitrage strategies. This suggests that actual long-term demand for Bitcoin as an asset in multi-asset portfolios may be significantly smaller than media narratives suggest.
The current market pullback has largely been triggered by macroeconomic factors that have contribute to market uncertainty. Former U.S. President Donald Trump’s proposed 25% tariffs on Canadian and Mexican imports are set to take effect in March, fueling fears of rising inflation.
Despite the correction, CryptoQuant’s CEO remains long-term bullish. In a Feb. 19 post, he argued that Bitcoin’s bull cycle is still intact, noting that past cycles have seen price drops of up to 30% from all-time highs without signaling a bear market.
