Many different cryptocurrency exchanges play a crucial role in this ecosystem. Coinbase Pro remains a household name and notes a significant increase in trade size. Even so, there is a lot of selling activity on this platform, for some reason.
Coinbase Pro Is Making Moves
It is intriguing to note how one can interpret the data by Kaiko. While it is good to see the average trade size on the exchange increase, this often works both ways. Some users may be intent on buying larger amounts, but others will place bigger sell orders. This latter part is of great interest, at least during the recent Bitcoin price dip.
There is a significant increase in trade size for Bitcoin orders. Both buy and sell orders are increasing in volume on Coinbase Pro. Even during the Bitcoin dip a few days ago, the order size is rather significant. Buyers placed an average order for $3,000, whereas sellers went past $4,000 per order.
Keeping those figures in mind, it is not hard to see why there was a Bitcoin price dip. This momentum is similar to what happened in March of 2020. At that time, the BTC value hit $3,700. Its recovery since then is incredibly impressive. These days, there is still some bearish market pressure to contend with. How much of that comes from Coinbase Pro remains unclear.
of Coinbase Pro is not necessarily concerning. The exchange notes a daily volume of $3-4 billion. The majority of the volume pertains to BTC/USD trading, as its UR and GBP pairs are far less prevalent. Ethereum trading is also a strong contributor, together with Chainlink.
Can Traders Keep Bitcoin Down?
Judging by today’s market momentum – a net 10.8% loss – the Bitcoin price will remain volatile for a while to come. Not entirely surprising, as weekends are often prone to more fluctuations. Bitcoin’s trading volume primarily originates from Binance and Huobi Global, with Coinbase Pro in third place.
Statistics by CryptoQuant confirm there is still a substantial influx of BTC for Coinbase Pro today. The numbers are slightly lower than a few days ago, but the overall flow lends itself to more market pressure. This increase in Bitcoin inflow has been in place since early December 2020. It coincides with Bitcoin’s rise to $40,000.
What will happen over the coming days is difficult to predict. If this increasing inflow remains in place, the price may not move up much higher. At the same time, these markets are very unpredictable, and anything can happen. Keeping an eye on the market will be necessary for those maintaining a long or short position.