Bitcoin’s Recent Dip Below $58,000
Unfortunately for cryptocurrency enthusiasts, Bitcoin has not been able to escape a bearish trend and has experienced a significant drop over the weekend. The digital asset’s price plummeted to $57,100, reaching a low not seen since mid-August.
Analysis of Bitcoin’s recent performance is depicted in the chart below.
One potential factor contributing to this downturn in price could be linked to the Coinbase Premium Index.
Recent Shift in BTC Coinbase Premium Index
According to a CryptoQuant Quicktake analysis, the Coinbase Premium Index has recently shown a change in trend. This index tracks the percentage disparity between Bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair).
- Positive Coinbase Premium Index indicates higher prices on Coinbase compared to Binance, suggesting increased buying or reduced selling activity on Coinbase.
- Negative values signal higher selling pressure on Coinbase leading to lower prices on the platform.
The chart below illustrates the fluctuation in the Bitcoin Coinbase Premium Index in the past month.
The data displayed in the graph indicates that the index had remained positive following the crash below $50,000 in early August until recently. The surge in buying activity on Coinbase during this time might have supported Bitcoin’s recovery. However, the recent shift to negative territory in the index coincided with a decline in Bitcoin’s price.
It is evident that the movement of Bitcoin’s price is linked to the Coinbase Premium Index, a correlation that has been witnessed consistently throughout the year. The preference of American institutional investors for Coinbase makes it a significant platform influencing market behavior.
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