Bitcoin Coinbase Premium Gap Indicates Buying Pressure
Data reveals that the Bitcoin premium on Coinbase has surged alongside the recent rally, indicating a potential source of the surge. The “Coinbase Premium Gap” measures the difference between Bitcoin prices on Coinbase and Binance. When this metric is positive, it means that the price on Coinbase is higher than on Binance, suggesting greater buying pressure from Coinbase users. Conversely, a negative value suggests higher buying pressure on Binance. Recently, the Bitcoin Coinbase Premium Gap has shown notable positive values, indicating a soaring buying pressure on the platform.
US Institutional Investors Accumulating?
As Coinbase is popular among US-based institutional entities, the positive value of the Coinbase Premium Gap suggests that US institutional investors may be participating in accumulation. The rise in the indicator’s value aligns with the surge in Bitcoin price, which broke past $45,000 for the first time since April 2022. This suggests that buying pressure from American whales may be driving the latest upward push in the cryptocurrency market.
Potential Connection to ETF Approval
The surge in Bitcoin price comes as the sector anticipates the approval of spot exchange-traded funds (ETFs) for the asset. Many believe that these US institutional holders could also be buying into this hype. Previously, a correlation was observed between BTC spot price and Coinbase Premium Gap, and this latest event indicates that this correlation may continue to hold in 2024.
BTC Price and Pullback
Bitcoin reached a high of $45,900 but has since experienced a pullback towards $45,500.
Hot Take: The Coinbase Premium Gap Points to US Institutional Investors Driving the Bitcoin Rally
The surge in the Bitcoin price and the positive values of the Coinbase Premium Gap suggest that US institutional investors are playing a significant role in driving the recent rally. As Coinbase is popular among these entities, the buying pressure from American whales appears to be a key factor behind the cryptocurrency’s upward push. This aligns with the anticipation of ETF approval, which could further fuel institutional interest in Bitcoin. With the correlation between BTC spot price and Coinbase Premium Gap holding true, it will be interesting to see how this trend develops in 2024.
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