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Bitcoinholdings 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. Coinbases 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.

Others suggested that the funds could be going to a different custodian and that they arent individual withdrawals, as most of whats in these exchanges doesnt belong to them anyways, so this number should be a lot lower.

With every Bitcoin halving cycle, the amount of new BTC entering the market is reduced by half, creating a supply crunch as demand grows. The next BTC halving will happen in April at a block height of 740,000. The block reward for each block mined by miners will be reduced from 6.25 BTC to 3.125 BTC. The upcoming halving also comes amid massive institutional demand, with 11 spot Bitcoin exchange-traded funds (ETFs) approved in the United States in January.

Related: Grayscales GBTC outflows reach $7B, but data shows its slowing

Currently, around 900 BTC is mined daily, while Bitcoin ETFs daily net inflows are about half a billion dollars or about 9,650 BTC despite Grayscale registering nearly $100 million in daily outflows.

Post-April halving, the daily amount of BTC produced will be reduced to about 450 BTC, with institutional demand continuing to rise. This massive supply-demand gap has historically proven bullish for the Bitcoin price, with new all-time highs coming within a year of the halving.

Bitcoin is trading at around $52,000, its highest level since December 2021, down 25% from its all-time high of around $69,000.

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Bitcoin holdings on Coinbase reach lowest level since 2015 as whales withdraw $1B BTC - Cointelegraph