Bitcoin At $63,000 As Institutional Buyers Back On Coinbase
Data shows the Bitcoin Coinbase Premium Gap has turned positive recently, a sign that institutional entities have started buying the asset again.
Bitcoin Coinbase Premium Has Been Positive Alongside Latest Rally
As pointed out by an analyst in a CryptoQuant Quicktake post, the Coinbase Premium Gap, which had negative values just earlier, has switched back to positive recently.
The “Coinbase Premium Gap” here refers to an indicator that keeps track of the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
When the value of this metric is positive, it means the price of the asset listed on Coinbase is greater than that on Binance right now. Such a trend implies the former platform is currently observing a higher amount of buying pressure than the latter one.
On the other hand, the indicator being below zero suggests Coinbase may be facing a higher amount of selling pressure as compared to Binance at the moment.
Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the past few weeks:
The value of the metric appears to have been going up in recent days | Source: CryptoQuant
As is visible in the above graph, the Bitcoin Coinbase Premium Gap had been inside the negative territory during the last third of June and the first few days of this month.
During this period, BTC’s price faced bearish momentum, which ultimately culminated in it witnessing a crash under the $54,000 level. This would imply that the selling pressure on Coinbase may have been a factor behind the asset’s downwards trajectory.
From the chart, it’s apparent that following the crash, the metric approached neutral levels, suggesting that Coinbase and Binance no longer differed in levels of selling or buying.
In the past few days, the indicator has now flipped green, meaning that users on Coinbase have started participating in a higher amount of buying than those on Binance. Alongside this latest buying pressure, BTC has registered a recovery surge back towards the $63,000 mark.
Coinbase is popularly known to be the preferred platform of the US-based institutional entities, while Binance hosts more global traffic. As such, the Coinbase Premium Gap can be considered to reflect how the American whales differ in behavior from the rest of the investors.
Therefore, the return of positive values of the metric would indicate that these institutional holders would have now started accumulating the cryptocurrency again.
It only remains to be seen, though, whether this green premium is the beginning of a new trend for Bitcoin, or only a temporary deviation from the earlier pattern of selling from the American institutional investors.
BTC Price
Bitcoin had broken beyond the $63,000 level earlier in the day, but the asset has since seen a minor pullback to the $62,700 mark.
Looks like the price of the coin has sharply gone up over the past day or so | Source: BTCUSD on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
