Bitcoin Coinbase Premium Gap Indicates Aggressive Buying by Coinbase Users
Coinbase users have been actively participating in aggressive buying of Bitcoin recently, according to a post by Maartunn, the CryptoQuant Netherlands community manager. The post highlights the “Coinbase Premium Gap,” which measures the difference between Bitcoin prices on Coinbase and Binance, two popular cryptocurrency exchanges.
Coinbase is known for its popularity among US-based investors, including large institutional holders, while Binance receives more global traffic. The value of the Premium Gap can provide insights into the differing behaviors of these two user groups. A positive value indicates that the price on Coinbase is higher than that on Binance, suggesting that American investors are exerting higher buying pressure or lower selling pressure compared to global users.
A chart displaying the trend in the Bitcoin Coinbase Premium Gap over the past few days shows an upward movement in the metric. Previously, the Premium Gap had been negative, indicating that Coinbase users were selling more than Binance users. This negative trend intensified during the plunge towards the $25,000 level, suggesting that the selloff was driven by American holders.
However, during the recovery, the Premium Gap turned positive, albeit with a delay, suggesting that US-based investors initially did not contribute to the surge. Since then, the indicator has consistently remained at notable positive values, indicating that Coinbase’s user base has been accumulating the cryptocurrency.
Recent data shows a sharp spike in the Premium Gap, indicating increased buying on Coinbase in the past couple of days. This surge in buying could suggest that US-based investors are driving the recent growth of Bitcoin beyond the $27,000 level. This is a positive sign, as strong buying pressure from US institutional holders could fuel the cryptocurrency’s rise to higher levels.
It remains to be seen whether the Bitcoin Coinbase Premium Gap will continue to remain positive in the coming days or if buying will cool down on the platform.
BTC Price
Bitcoin experienced a sharp drop from $27,200 to $26,600 yesterday but quickly recovered to the previous level. The chart below illustrates the recent volatility in Bitcoin’s price.
[Chart]
Featured image from Michael Förtsch on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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