Bitcoin’s Upward Price Potential Explained by FalconX Research Head
According to David Lawant, the head of research at cryptocurrency brokerage FalconX, Bitcoin may be poised for a significant price increase. Lawant points to the current discount on the Coinbase Bitcoin premium as a key indicator of this potential upswing.
Lawant shared on Twitter that the last time the Coinbase Bitcoin premium was this negative was in October 2023. At that time, Bitcoin was trading at $27,000 before embarking on a bull run that saw it reach a new all-time high above $73,500.
Lawant believes that Bitcoin may see a rise soon, especially after correcting from over $73,000 to around $60,000 at the time of his assessment.
Historical Significance of the Coinbase Premium Index
- The last time the Coinbase premium was as negative as it is now was in October 2023, preceding a significant price rally for Bitcoin
- Lawant believes that this negative premium could once again signal a potential price surge for Bitcoin
- Current Bitcoin correction from its all-time high could be setting the stage for a renewed uptrend
Understanding the Coinbase Premium Index
The Coinbase premium index is an indicator that shows the price difference between Coinbase’s BTC/USD pair and Binance’s BTC/USDT pair. When this premium is positive, it indicates increasing buying pressure on the exchange.
However, a deeply discounted premium suggests weak buying pressure from American investors, a trend that has historically coincided with Bitcoin price bottoms.
Implications for U.S. Investors and Bitcoin’s Future
- Lawant expects a resurgence of U.S. investor interest in Bitcoin, potentially driving the price to new highs in the coming months
- Large BTC investors have been quietly accumulating Bitcoin while the price recovers from recent lows
- The recent buying activity from large holders signifies a strong net inflow into Bitcoin and could signal confidence in the cryptocurrency’s value
Hot Take: Bitcoin’s Potential Price Surge
Based on historical trends and the current state of the Coinbase Bitcoin premium index, Bitcoin may be gearing up for a notable price increase in the near future. The combination of discounted premiums, accumulating large holders, and a potential resurgence of U.S. investor interest could pave the way for a bullish run in the coming months.
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