Data shows that the Bitcoin Coinbase Premium Gap has turned positive recently, a sign that institutional entities have started buying the asset again.
Coinbase Bitcoin Premium Has Been Positive Alongside Latest Rally
As one analyst pointed out in a CryptoQuant Quicktake jobThe Coinbase Premium Gap, which had negative values earlier, has recently returned to positive values.
THE “Coinbase Premium Gap” here refers to an indicator that tracks the difference between Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
When the value of this metric is positive, it means that the price of the asset listed on Coinbase is currently higher than that of Binance. Such a trend implies that the former platform is currently observing higher buying pressure than the latter.
On the other hand, the fact that the indicator is below zero suggests that Coinbase might be facing higher selling pressure than Binance at the moment.
Now here is a chart that shows the Bitcoin Coinbase Premium Gap trend over the past few weeks:
The value of the metric appears to have been going up in recent days | Source: CryptoQuant
As the chart above shows, the Bitcoin Coinbase Premium Gap was in negative territory during the last third of June and the first few days of this month.
During this period, the price of BTC faced bearish momentumwhich eventually resulted in a crash below the $54,000 level. This would imply that selling pressure on Coinbase may have been a factor behind the asset’s downward trajectory.
From the chart, it is clear that after the crash, the metric moved closer to neutral levels, suggesting that Coinbase and Binance were no longer different in terms of selling or buying levels.
Over the past few days, the indicator has turned green, meaning that Coinbase users have started to participate in a larger number of purchases than Binance users. Along with this latest buying pressure, BTC has seen a recovery push towards the $63,000 mark.
Coinbase is known to be the preferred platform for US-based investors. institutional entitieswhile Binance hosts more global traffic. As such, the Coinbase Premium Gap can be seen as reflecting the difference in behavior between US whales and the rest of investors.
Therefore, the return of positive values of the metric would indicate that these institutional holders would now have started to accumulate the cryptocurrency again.
It remains to be seen whether this green premium is the start of a new trend for Bitcoin or just a temporary deviation from the previous selling pattern by US institutional investors.
BTC Price
Bitcoin had broken through the $63,000 mark earlier today, but the asset has since seen a slight 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 by Dall-E, CryptoQuant.com, chart by TradingView.com
