On Saturday, Coinbase moved a large batch of Bitcoin and Ethereum worth billions of dollars into new internal wallets according to the latest crypto news.
The migration was a planned security step designed to limit the risks that come with leaving assets in the same, publicly known addresses for too long.
While the firm noted that the movement was a routine security practice, many across Crypto Twitter deemed it as a possible bullish move preceding a stronger price movement.
However, a spokesperson from Coinbase said the routine migration normally minimizes the long-term exposure of customer funds and is unrelated to any price conditions or industry changes.
The spokesperson also confirmed the fund migration was not a response to any security breach or threat.
Crypto News: Coinbase Exchange Transfers BTC and ETH to New Wallets
Coinbase moved billions of dollars worth of Bitcoin and Ether from an existing wallet to new internal wallets, citing the move as a routine security practice.
Blockchain explorers and analytics firms identified the movement with X crypto pundit Crypto Rover spotlighting the activity.
The exchange issued a notice to followers on X about 30 minutes before the scheduled migration took place where it urged crypto users that none of the funds were being sold and that all the movements were traceable on-chain.
The migration comes just after the overall crypto market suffered a week-long bloodbath causing the market capitalization to slide from $3.25 trillion to $2.82 trillion over the last seven days.
At a time when the entire market is scalping institutional, geopolitical and economic news for the next positive indicator of a price recovery that could lead to a bounce off to fresh highs.
As such, there are those on X who viewed the fund migration to new wallets as bullish crypto news including veteran trader Crypto Patel who replied that wallet migrations often come before big price movements.
Coinbase Warns Scammers May Take Advantage of the Migration
The crypto exchange warned that the sheer size of the transfers could attract the wrong kind of attention.
It said scammers may use the moment to pose as Coinbase staff, and urged customers to ignore any unexpected calls or messages claiming to come from the company.
In the notice, Coinbase stressed that it does not ask for passwords, two-factor codes, or seed phrases, not during a migration, and not at any other time.
The company added that it won’t call users with instructions to move funds. The exchange also flagged another risk, fraudsters may try to use the wallet rotation to stir up panic.
Coinbase said it will not issue new wallet addresses for customers and encouraged users to report anything that feels off.
This crypto news update landed just days after Coinbase bought Vector.fun, a Solana-based token aggregator that has become one of the faster movers in the DeFi and social-trading space.
The DEX platform lets users track, copy, and talk through meme-coin trades in real time — a simple idea that resonated on Solana. The company says its active user base has now climbed past 500,000.