Bitcoin’s Potential Rally Despite Negative Coinbase Premium

A crucial indicator reflecting the interest of US investors in bitcoin turned negative on Friday.

Nevertheless, experts are optimistic that this change could have a positive impact on BTC’s value.

Coinbase Bitcoin Premium Hits Negative Territory

As per a report from a CryptoQuant analyst, the Coinbase Premium recently recorded a considerable negative value. The Coinbase Premium Index measures the percentage difference between the bitcoin price on Coinbase Pro and Binance.

Coinbase Pro is favored by crypto traders in the United States and several institutional investors, while Binance, the largest crypto exchange by trading volume, serves a more international audience. Thus, the index sheds light on the trading behaviors of users on both platforms.

Historically, a positive Coinbase Premium indicates substantial buying pressure from U.S. investors. Conversely, a negative shift in the index points to decreased demand for bitcoin among U.S. investors.

BTC Shows Stability Amid Increased Buying Pressure on Binance

According to the data, even with waning demand from US investors, bitcoin’s price has remained steady, which suggests “strong buying pressure is occurring on Binance.”

The CryptoQuant analyst noted that bitcoin’s price could potentially witness a significant surge should demand for digital assets rise in global markets. Current market movements suggest this may happen soon.

“For Bitcoin’s price to experience a notable increase, buying pressure must extend beyond the U.S., driven by FOMO (Fear of Missing Out) in global markets. This shift is highly promising,” the analyst remarked.

Following the US Fed interest rate cut on Wednesday, bitcoin has continued to soar. Earlier today, the leading cryptocurrency briefly surpassed $64,000 for the first time since last month.

The crypto asset has made a slight retraction and is currently trading at $62,800 at the time of writing. If the upward trajectory continues, bitcoin may retest its all-time highs, supported by several favorable factors. More details can be found here.