Recent data indicates that the Bitcoin Coinbase Premium Index has experienced a significant rise, suggesting it may be a contributing factor to the recent price increase.
Bitcoin Coinbase Premium Index Now Shows Significant Positive Values
According to CryptoQuant Head of Research Julio Moreno in a recent post on X, the BTC Coinbase Premium Index has jumped into positive territory recently. The “Coinbase Premium Index” is an indicator that measures the percentage difference between Bitcoin prices on Coinbase (USD pair) and Binance (USDT pair).
Related Reading: US Platforms Regaining Dominance In Bitcoin Holdings: Is This Bullish?
A positive value for this metric indicates that Bitcoin is trading at a higher price on Coinbase compared to Binance at this moment. This trend suggests that there is greater buying pressure or less selling pressure on Coinbase than on Binance. Conversely, a negative value indicates that users on Coinbase are selling more compared to those on Binance.
Here is the chart shared by Moreno that illustrates the trend of the Bitcoin Coinbase Premium Index over the past few weeks:
The metric's value has surged into positive territory recently | Source: @jjcmoreno on X
The above graph shows that the Bitcoin Coinbase Premium Index had previously dipped into negative territory, but with the recent price rally, it has sharply risen back into positive territory. This indicates that Coinbase investors have been accumulating more Bitcoin, likely contributing to the coin’s price increase.
Coinbase serves as the primary platform for U.S.-based investors, particularly large institutional entities, while Binance caters to a global audience. Thus, the Coinbase Premium Index essentially reflects the differing behaviors of American investors versus those elsewhere.
This year, Bitcoin has been closely tracking this index, suggesting that U.S.-based whales have been driving the recent price movements. Therefore, it is reasonable to expect this trend to persist with the current rally.
The Coinbase Premium Index is currently on the rise, but it’s important to monitor it going forward, as its value can quickly change. If it turns negative, we could see bearish trends for Bitcoin, as has happened several times this year.
In other news, Bitcoin is nearing the cost basis of its final short-term holder cohort, as discussed by CryptoQuant author Axel Adler Jr in an X post.
The Realized Price of various short-term holder segments | Source: @AxelAdlerJr on X
This particular segment of short-term holders, who acquired their Bitcoin between three and six months ago, currently has an average cost basis of $66,300. Should Bitcoin surpass this price, all short-term holders (those who purchased within the last six months) would find themselves back in profit.
BTC Price
At the moment of writing, Bitcoin is trading at approximately $65,700, marking a more than 3% increase over the past week.
BTC appears to be trending upwards over the past few days | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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