Bitcoin on the Rise After Coinbase Premium Index Turns Positive
An expert analysis from CryptoQuant Quicktake reveals that the Bitcoin Coinbase Premium Index has recently shown a positive trend after being in the negative during the recent crash.
Understanding the Coinbase Premium Index
The Coinbase Premium Index is an indicator that tracks the percentage difference between Bitcoin prices on Coinbase (USD pair) and Binance (USDT pair).
- A positive value indicates higher prices on Coinbase than on Binance, signaling greater buying pressure or lower selling pressure on Coinbase.
- A negative value suggests more selling activity on Coinbase compared to Binance.
Recent Trends in the Index
The chart depicting the Bitcoin Coinbase Premium Index over the past few months shows interesting patterns:
- In late July, the index turned negative coinciding with Bitcoin’s drawdown.
- Subsequently, the index hit notable red values, reflecting the cryptocurrency’s crash.
- After hitting lows, the index flipped to positive, indicating increased buying activity on Coinbase.
This correlation between Bitcoin’s price movements and the Coinbase Premium Index has been consistent throughout the year.
The Role of Coinbase in Bitcoin’s Recovery
Coinbase is favored by American institutional investors, while Binance caters to a global audience, leading to differing behaviors among large investors.
- A change in the index’s value may indicate a shift in strategy among these investors.
- The current positive trend could point towards continued recovery for Bitcoin.
Bitcoin Price Movement
After a brief decline below $55,000, Bitcoin has surged past $57,400 again, showcasing its resilience.
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