Coinbase Pro Buyers Trigger Spike in Bitcoin Premium

After several weeks of stepping into the red, the market briefly climbed to $ 1 trillion. The world’s largest cryptocurrency – Bitcoin – as well as some large altcoins, brought in remarkable gains. In addition, it appears that Coinbase’s Bitcoin price premium is also on the rise after rising close to 0.075.

Possible whale accumulation

according to data from the blockchain analysis company CryptoQuant, the Coinbase Premium Index entered positive territory for the second time since April 2022. The index did not rise until 0.217 until 30 June, shortly after it slipped back to the red zone.

Coin base $ BTC the price premium seems to be picking up again. pic.twitter.com/SDEIn1IkPz

Ki Ki Ju (@ki_young_ju) July 8, 2022

Over the past week, it also appeared that the Bitcoin Coinbase premium gap has improved. This indicated that the sales pressure could dry up.

Coinbase Premium – which compares Bitcoin’s price on Binance and Coinbase Pro (Coinbase’s professional trading platform) against Tether and USD – is a calculation used to measure institutional whale movement.

The positive premium mainly indicates that whales strengthen their accumulation and constantly buy at a higher level. Furthermore, this trend also shows increasing interest and activity among investors in Coinbase.

While the recent increase means that it is a bull run, it shows that there are institutional buyers in the price range.

Breaking the Red Streak

In May, the BTC premium on the largest cryptocurrency exchange headquartered in the US fell to the lowest (negative) levels since 2019, amid intense market correction. Bitcoin saw the most violent quarter of the decade dumped below $ 20,000 twice in June alone.

The death spiral of Terra ecosystem tokens combined with severe macroeconomic conditions was just the forerunner. What followed were a number of redundancies from well-known crypto companies as well as bankruptcy and liquidation cases from lenders of digital assets.

Despite volatility, the crypto market is recovering. Galaxy Digital CEO Mike Novogratz recently said that most of the delveraging is “already out of the system”, and a potential case of more downside price actions does not appear in the cards. But in a case where Bitcoin is going down, the investor claimed that “the market can go sideways while waiting for a clear signal of reversal.”