Coinbase Nears 1 Million Bitcoin Milestone
Coinbase, the Nasdaq-listed cryptocurrency exchange, is getting close to holding 1 million bitcoins in its reserves. Currently, it possesses 994,981 BTC valued at $42.17 billion. This makes Coinbase the second-largest bitcoin holder after Satoshi Nakamoto. In the past two weeks alone, Coinbase’s bitcoin reserves have grown by 16,404 bitcoins, equivalent to $694 million.
Influx of BTC in ETFs Linked to Coinbase
Ten new U.S.-based spot bitcoin exchange-traded funds (ETFs) have seen significant activity. Grayscale’s GBTC reserves have decreased by 114,367.39 BTC since January 12, 2024, while the other nine ETFs have collectively accumulated 132,170 BTC. Most of these ETFs rely on Coinbase for custodial services. This reliance has likely contributed to the recent increase in Coinbase’s BTC reserves.
Potential Offchain Swaps and Milestone Achievement
It is possible that Coinbase’s custodial services have facilitated offchain swaps, with Coinbase as the sole intermediary. If the trend of BTC deposits at Coinbase continues, the exchange is expected to reach the 1 million bitcoin milestone soon, needing only an additional 5,019 bitcoins. Currently, Coinbase holds 5.07% of the total circulating supply of 19,611,049 bitcoins, representing 4.73% of the overall 21 million bitcoin supply cap.
Increased BTC Reserves and Market Liquidity
Aside from Coinbase, other exchanges have also experienced an influx of bitcoins since the beginning of January. Exchanges collectively held 2,087,030 BTC on January 1, 2024, and this has increased to 2,100,984 BTC today. This rise in BTC reserves generally suggests increased selling pressure, while substantial withdrawals indicate reduced liquidity in the market.
Hot Take: Coinbase Set to Surpass 1 Million Bitcoins Soon
Coinbase, the leading cryptocurrency exchange, is on the verge of holding 1 million bitcoins in its reserves. With a recent increase in bitcoin deposits and its role in facilitating offchain swaps for ETFs, Coinbase is inching closer to this significant milestone. The exchange’s growing BTC reserves reflect the overall trend of increased bitcoin holdings in various exchanges. This development has implications for market liquidity and selling pressure. As Coinbase gets closer to achieving the 1 million bitcoin mark, it solidifies its position as a major player in the cryptocurrency industry.
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