Speculation took root after a user on X claimed such a limitation on October 24. The controversial post attracted massive attention, garnering over 250,000 views, with a high engagement rate reflected by its 420 retweets and almost 2,000 likes.
Coinbase quickly resolved the situation, with a spokesperson clarifying that the allegations were unfounded and confirming that no such policy was in place restricting Bitcoin withdrawals when converting to Coinbase cash balances.
Coincidentally, this rumor surfaced during major crypto exchanges including Coinbasesaw massive outflows on the same date, with the price of Bitcoin reaching the $35,000 mark. Historically, these capital outflows are seen as bullish indicators, suggesting that traders are moving their assets into safer storage in anticipation of rising prices.
Analytical data from CoinGlass identified Binance as the top exchange with the largest outflow of over $500 million in one day. Crypto.com and OKX followed with outflows of $49.4 million and $31 million, respectively.
The recent surge in Bitcoin price also led to the liquidation of $400 million in short positions, with 94,755 traders having their derivative positions liquidated in the last 24 hours. The largest liquidation order took place on Binance, amounting to $9.98 million.
While past market dynamics have often associated large capital outflows with fears of a “bank run”, particularly following events such as FTX collapsethe current scenario seems more aligned with bullish sentiment. The prevailing trend suggests that investors are in hoarding mode, anticipating an upward trajectory in asset prices, a behavior often seen during periods of recovery from prolonged market troughs.
Over the past 24 hours, the total cryptocurrency market capitalization increased by more than 7.3% to $1.25 trillion, its highest value since April. This sudden rise is believed to be due to increased speculation regarding the introduction of a traditional Bitcoin exchange-traded fund (ETF).
Meanwhile, a report from Law360 revealed that the SEC’s decision not to challenge the reversal of its previous rejection of Grayscale Investments The Bitcoin exchange-traded fund proposal suggests the agency is preparing to get the green light on several Bitcoin-related ETFs. Approval of an ETF could inflate the cryptocurrency market capitalization by at least $1 trillion, potentially propelling the cryptocurrency’s price to $73,000.