A few users on X believe the movement of funds indicates a supply shock prior to the halving, while others pointed out that whales are just moving funds to OTC desks or other custodians.
Bitcoin holdings on Coinbase crypto exchange have fallen to their lowest level in nine years as users move a significant chunk of their holdings off the exchange.
According to a report from CryptoQuant, whales moved 18,000 Bitcoin (BTC) worth nearly $1 billion off Coinbase over the weekend, with transfer values ranging from $45 million to $171 million. Coinbase’s public order book now holds around 394,000 BTC, which is estimated to be worth $20.5 billion.
Whales moving their BTC holdings away from centralized exchanges is considered a bullish sign as less Bitcoin is available for sale. However, users on social media are divided over the nature of the transfers. Some believe the funds are being moved to custodial wallets in anticipation of a price surge, with the upcoming Bitcoin halving, just two months away, creating a supply shock. While a few others believe that the moved funds could be used for liquidity for over-the-counter (OTC) trades.
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Source: https://cointelegraph.com/news/bitcoin-coinbase-holdings-lowest-2015