Coinbase’s Recent SHIB Withdrawal

Major U.S. cryptocurrency exchange Coinbase recently experienced a significant outflow of the meme-inspired cryptocurrency Shiba Inu (SHIB).

In the past four days, around 169.63 billion SHIB, valued at about $2.5 million, left the exchange’s hot wallet. The destination was wallet 0x8a26, which has no prior transaction history.

The withdrawal occurred in four phases, with the last and largest transfer of 62.783 billion SHIB taking place approximately 19 hours ago.

Public perception often views these withdrawals from centralized crypto platforms as actions by large investors who purchase on liquid exchanges and then transfer their assets to non-custodial wallets. However, this could also be an internal operation by the exchange, especially considering recent security concerns following the $1.5 billion ByBit exploit.

Divided Sentiment on SHIB

According to on-chain exchange flow data from Arkham Intelligence, such withdrawals are currently not the norm; most SHIB tokens are actually flowing into exchanges, not leaving. This contrasts with typical withdrawal patterns, which can signal bearish sentiments, as sellers usually deposit their holdings on platforms to sell.

The overall cryptocurrency market lacks clear direction for Shiba Inu at the moment, making these dynamics less surprising. The price impact of these withdrawals is notable. However, how this scenario will evolve remains uncertain. If a high-capacity investor is indeed withdrawing billions of SHIB from Coinbase, it will be intriguing to observe if their strategy proves beneficial.