Over the past day, Bitcoin has seen a decline below the $93,000 level. Here’s what the index’s trend suggests about the causes of this downturn.

Coinbase’s Premium Bitcoin Vulnerability Has Cooled Down

As noted by CryptoQuant community analyst Maartunn in a recent post on X, Coinbase’s premium gap recently returned to neutral. “Coinbase Premium Gap” here refers to an indicator that tracks the difference between the Bitcoin price quoted on Coinbase (USD pair) and the price on Binance (USDT pair).

This indicator essentially tells us how buying or selling behavior differs between the user bases of two cryptocurrency exchanges. Coinbase’s main traffic is made up of US investors, especially enormous institutional players, while Binance serves investors around the world.

When the Coinbase premium gap is positive, it means that US whales are participating in more purchases or lower sales than Binance users, which is why the asset is more costly on Coinbase. Similarly, its negative value means higher net buying pressure on Binance.

Here is a chart showing the trend of the Premium Bitcoin Coinbase gap over the last few days:

As shown in the chart above, the Coinbase Bitcoin premium gap was previously at a noticeably positive level, but over the past day it has dropped to a neutral zero level.

According to Maartunn, the source of the positive premium was Microstrategy’s recent buying spree. Indeed, the benchmark’s expiration coincides with the completion of a $5.4 billion purchase by Michael Saylor’s company. The significant accumulation by the company helped the cryptocurrency maintain its recent highs, but as buying pressure subsided, Bitcoin returned to price levels below $93,000.

BTC and Coinbase Premium Gap have maintained a close relationship throughout 2024, so this metric is worth keeping an eye on in the near future as its continued development could once again herald the asset’s next destination. Naturally, a drop into negative territory could signal further bearish price action.

In other news, Bitcoin’s energetic address rate has seen a pointed augment recently, as Maartunn shared in another X post. This metric tracks the daily number of addresses participating in some type of transactional activity on the network.

Below is a chart provided by a CryptoQuant analyst for the 14-day uncomplicated moving average (SMA) of energetic addresses:

With this latest gain, the 14-day SMA of energetic Bitcoin addresses has reached an eleven-month high. This suggests that there has been a lot of activity on the network recently. However, given that the asset has dropped in value over the past day, user interest has certainly not been to buy.

BTC price

At the time of writing, Bitcoin is trading at around $92,400, down almost 6% in the last 24 hours.