‘Unprecedented capital inflows into Bitcoin’ remove 12K BTC from Coinbase in an hour

Another day, another spike in Bitcoin (BTC) leaving major exchange Coinbase as funds pour into the largest cryptocurrency.Data from on-chain monitoring resource Glassnode showed 12,354 BTC ($694 million) being withdrawn from the Coinbase order book in a single hour on Friday.Coinbase sees another BTC balance squeezeAs the largest exchange in the United States, Coinbase has frequently been the venue for major Bitcoin buy-ins this year.As Cointelegraph reported, sudden tranches in excess of 10,000 BTC heading to private wallets is far from unheard of but nonetheless demonstrates a desire to at least store Bitcoin for the long term instead of keeping it within easy reach of a point of sale.Coinbase Pro Bitcoin balance chart. Source: BybtFor analyst Lex Moskovski, the type of investor behind such transactions remains uncertain — it could be a private individual or small group, as well as an institutional investor or corporate client.“Institutions or not, that’s still a significant outflow,” he commented on the Glassnode data.Coinbase Bitcoin outflows annotated chart. Source: Lex Moskovski/ Twitter“Healthy bull market”The data comes hand in hand with on-chain indicators staying firmly bullish. This week, Glassnode co-founder Rafael Schultze-Kraft highlighted a surge in Bitcoin’s so-called realized cap (Rcap) likewise supporting the broad buying thesis.The realized cap is a measure of Bitcoin’s market capitalization based on the price at which each coin last moved. It provides a useful insight into the market composition and trader sentiment and produces a significantly different total to the traditional market cap.“Unprecedented capital inflows into Bitcoin as measured by realized capitalization,” Schultze-Kraft tweeted on Friday. “Over the past 6 months, realized cap has surged a whopping $250 billion – an increase of ~200%. Healthy bull market.” He added that realized cap has increased by the same amount as the entire traditional market cap of Bitcoin as measured in December 2020.Bitcoin realized cap vs. BTC/USD annotated chart. Source: Rafael Schultze-Kraft/TwitterRelative to traditional cap, however, Rcap can still increase significantly before signalling the top of the bull market. MVRV, which measures the ratio of the two metrics, measured 4.4 this week, compared to 7.6 in February and over 10 at past market cycle tops. “We have yet to experience true fomo yet from institutions. It’s coming,” Timothy Kim responded to the Glassnode numbers.

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Ethereum Classic gains 300% in one week as traders rush to buy the 'wrong Ethereum'

The “original” yet ironically “wrong” Ethereum and Telcoin (TEL) are leading a fresh altcoin surge this week. Bitcoin (BTC) fans are already calling time on the fun.Ethereum Classic (ETC), the pet favorite of Digital Currency Group founder Barry Silbert, is up 300% in a week. ETC hits $180: Bull market or “casino market”?In the latest incarnation of the 2021 “alt season,” altcoins are passing the torch between each other as investors chase optimal gains. This year has also seen a curious shift in market focus from a token’s use case to the culture around it. This was epitomized with Dogecoin (DOGE), the high flyer of 2021, which has gained over 7,000% since January.Memes and other social triggers likewise seem to be driving progress in this week’s round of breakouts, with ETC exploding in value without any noticeable changes. TEL has benefited from a successful layer-2 migration.“Casino market hypothesis,” Blockstream CEO Adam Back responded during a Twitter debate about why the altcoin market was delivering such results.As Cointelegraph reported, Back had also referred to luck of the draw as driving DOGE’s rise in fortunes.Others noted that investment in ETC, in particular, may not only be short-sighted but dangerous: in its four-year existence, its blockchain has suffered multiple 51% attacks, pointing to a lack of security and resilience which is absent from Bitcoin and the “newer” Ethereum (ETH).Price volatility was also recorded, with ETC trading at a giant 50% premium on Coinbase as prices took off on Wednesday.ETC/USD 1-day candle chart (Binance). Source: TradingviewNonetheless, fans were unperturbed and appeared not to be in a hurry to exit their positions.Last week, dad told me he bought $ETC at $30 and I told him he bought the wrong Ethereum and there’s no usecase or adoption at all.He sold it immediately after and it’s now at $140.Gonna disown myself first before he gets to do it.— Squeeze (@cryptoSqueeze) May 7, 2021Silbert himself reminded Twitter followers of ETC’s price journey since inception in 2016 — from $0.50 to over $180, and a three-year high against Bitcoin.Asked if he was “happy” with what had happened, Silbert said that Thursday had been a “good day.” ETC is now the 13th largest cryptocurrency by market cap, having begun the year in 38th position. Spillover from increased interest in ETH is a constant topic when it comes to its legacy parent, with data from sentiment resource TheTIE showing that ETH tweet volumes surpassed those involving BTC for the first time.Tweet volume chart for BTC (green), ETH (red), ETC (blue). Source: TheTIE”Classic” altcoins emerge from hibernationMeanwhile, Bitcoin is repeating moves of a different, less favorable kind as the week draws to a close. Having once again failed to tackle resistance at near $60,000, BTC/USD was back at $56,000 on Friday, having dropped to lows of $55,400.Despite the relative lack of upside, however, longtime market participants remain wholly signed up to the bull market mentality.“BTC, ETH and the whole market keep pumping and pumping, unreal,” Simon Dedic, managing partner at blockchain advisory and investment firm Moonrock Capital, summarized on Thursday.“After 2 years of bear market, you learn to appreciate every single day of a bull market. Don’t take this market for granted. Stay humble, stay thankful, stay rational.”As Cointelegraph reported, many altcoins on the market longest of all have seen a return to form in recent weeks.BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

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