Coinbase Sees Largest USDC Inflow Ever, What This Could Mean for Bitcoin
On-chain data shows that Coinbase has just witnessed its largest inflow of US Dollar coins (USDC). Here’s why this might be relevant to Bitcoin.
Coinbase Just Received $1.4 Billion in USDC
As noted by analyst Maartunn in a post on X, a large amount of USDC has flowed into Coinbase over the past day. The indicator of interest in the network here is “exchange inflow,” which tracks the total amount of a given asset entering wallets associated with a centralized exchange or group of platforms.
An increase in coin inflows could indicate that investors are interested in selling cryptocurrencies. In the case of an asset like Bitcoin, this trend can naturally be a bearish sign for the price.
However, in the context of the current discussion, the focus is on a stable currency. Although USDC coin inflows would also imply that the holder wants to sell the asset, the transaction would not affect the price since by nature the coin always remains stable around 1 dollar.
However, this does not mean that selling USD Coin is not in the interest of the cryptocurrency sector as a whole. If investors exchange stablecoins for volatile currencies like BTC, then the prices of the latter assets would see a buying effect.
In total, US$1.4 billion in stablecoins entered the platform’s wallets with this flow, the largest the exchange has ever seen. Given the extraordinary scale, this could be quite bullish for Bitcoin and others if the entity behind the entry plans to make a purchase with this dry powder.
However, there is also the scenario where the whale actually intends to exchange the pile of US dollar coins for fiat currency rather than using it to purchase other cryptocurrencies. In that case, a net amount of capital would be leaving the sector, which would be a bearish sign.
It now remains to be seen whether the huge USDC deposit will end up causing notable fluctuations on the volatile side of the market, particularly in the price of Bitcoin.
bitcoin price
Bitcoin had previously seen strong upward momentum to surpass the $70,000 level, but since then, the asset has returned to a sideways move and its price remains unchanged.