Coinbase Sees Massive Bitcoin Outflows as Institutions Accumulate Amid Market Volatility

Despite Bitcoin’s recent price dip, institutional investors appear to be accumulating the cryptocurrency, as evidenced by significant outflows from Coinbase. This trend highlights a divergence between institutional confidence and short-term trader caution in the market.

106K Bitcoin Outflows Signal Institutional Confidence Amid Price Volatility

Bitcoin has seen 106,217 BTC exit Coinbase since January 2025, defying its recent 0.68% price dip to $94,039. The sustained outflows suggest institutional players are accumulating despite short-term market turbulence.

Derivatives activity tells a contrasting story—declining volumes reflect trader caution, potentially capping near-term volatility. Bitcoin now tests a critical resistance level, leaving markets to weigh whether this marks an accumulation phase before upward momentum or a rejection point for further consolidation.

Coinbase Legal Chief Calls for Lifting SEC Crypto Ban for Staff

Paul Grewal, Coinbase’s chief legal officer, has formally challenged the SEC’s prohibition on staff holding cryptocurrencies, labeling the policy as counterproductive to effective regulation. In a letter to the Office of Government Ethics, Grewal argued that hands-on experience with digital assets is essential for crafting informed policies.

The current ban applies even to non-security crypto transactions, which Grewal calls ’particularly egregious’ given most blockchain activity falls outside traditional securities definitions. He contends existing conflict-of-interest protocols could easily address concerns about staff investments.

’You can’t regulate what you don’t understand,’ Grewal tweeted, urging immediate waivers for SEC’s crypto task force. The move comes as the agency faces increasing pressure to modernize its approach to digital asset oversight.