Bitcoin Coinbase Premium Index (7-Day SMA) Has Been Going Up Recently
Data shows that the Bitcoin Coinbase Premium Index, which tracks the percentage difference between the Bitcoin price listed on Coinbase and that on Binance, has been trending up. This index helps us determine which platform’s user base is buying or selling more of the asset. When the index value is greater than zero, it indicates increased buying pressure on Coinbase. Since Coinbase is popular among US investors, this could suggest that US-based investors are participating in more buying than global traders.
Recent Surge in the Coinbase Premium Index
The 7-day Simple Moving Average (SMA) Bitcoin Coinbase Premium Index has been negative this month, indicating that global investors have either outpaced US traders in accumulation or that Americans have been selling at a higher degree. However, as news of increasing probability for the approval of BTC spot ETFs in the US emerged, the indicator has started to rise. The recent sharp increase in the metric suggests that US-based institutional traders may be involved in significant buying.
Bitcoin Recovery Rally and US-Based Buying
During the same period, Bitcoin experienced a recovery rally, briefly reaching $30,000 before falling back. The timing of this rally and the sharp increase in the 7-day Coinbase Premium Index implies that buying from American holders may be fueling the move. Additionally, the Grayscale Bitcoin Trust (GBTC) Premium, which measures whether GBTC is trading at a premium or discount, has also been trending up. This suggests that US institutional traders are participating in the buying activity.
Implications for the Market
The recent surge in the Bitcoin Coinbase Premium Index and the GBTC Premium, along with the recovery rally in Bitcoin, indicate that US-based investors are playing a significant role in the market. This suggests potential optimism among US traders and may contribute to the overall recovery of the cryptocurrency market.
Hot Take: US-based Investors Driving Bitcoin Recovery
The recent increase in the Bitcoin Coinbase Premium Index, combined with the recovery rally in Bitcoin, suggests that US-based investors are actively participating in buying and contributing to the market’s rebound. This highlights the importance of monitoring the buying and selling activity of different user bases to gain insights into market trends and potential price movements.
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