Data shows the Bitcoin Coinbase Premium Gap has turned positive, indicating that American whales have been buying alongside the recent price surge.
Bitcoin Coinbase Premium Gap Has Surged Recently
The latest insights reveal a notable shift in the Coinbase Premium Gap, pointing to an energizing trend as BTC experiences a rally. This premium gap, which measures the difference between Bitcoin prices on Coinbase (USD pair) and Binance (USDT pair), is crucial for understanding the buying and selling behavior of users on these prominent exchanges.
While there is some overlap in user traffic between these platforms, Coinbase’s strong footing as the go-to exchange for US investors—particularly large institutional entities—gives the movements observed there a distinct flavor compared to Binance’s more globally distributed user base.
The recent trend reveals an encouraging uptick: for most of the past month, the Bitcoin Coinbase Premium Gap has consistently dwelled in negative territory. This typically suggests a higher level of selling pressure from American investors or a diminished interest in purchasing Bitcoin compared to their Binance counterparts.
However, a striking recovery rally over the past few days saw the Coinbase Premium Gap rise into the green, coinciding with Bitcoin’s price tagging nearly $97,000. This shift hints at a resurgence in accumulation by US institutional investors after a prolonged period of selling activities that characterized the previous month.
Yet, the resurgence into positive territory is still nascent. It remains to be seen whether American investors will sustain this bullish momentum in the coming days. A similar pattern unfolded earlier this month when Bitcoin surged beyond $94,000, only for the Coinbase Premium Gap to dip back into negative territory soon after, stifling the price rally.
In broader market insights, the surge in Bitcoin’s price has led to significant short liquidations within the futures market, as noted by analytics firm Glassnode in their latest weekly report.
The market data illustrates that Bitcoin short liquidations peaked sharply, nearing $90 million when BTC first approached the $96,000 mark during this current bullish phase.
BTC Price
At present, Bitcoin is trading around $96,500, reflecting a robust nearly 8% increase over the past week.
