Bitcoin’s recent entry into $70,000 territory has once again become a heated topic among investors, with many looking at a positive price outlook. As a result of this fascinating price action, the extensive majority long-term holders I saw their properties enter the profit zone. In particular, the positive outlook appears to be positive among U.S. investors, as evidenced by Coinbase’s positive premium. Some see the return of premium Coinbase as a bullish signal that could continue to push the price higher.
The Coinbase Premium Index turns positive
The Coinbase Premium Index (CPI), which had been negative since May 18, has now turned positive, according to analyst data. cryptocurrency analyst who cited data from CryptoQuant. Coinbase Premium refers to the price difference of Bitcoin on Coinbase compared to other major exchanges.
When the premium becomes positive, it means that Bitcoin is trading at a higher price on Coinbase compared to Binance and then other major cryptocurrency exchanges. This is essential because it shows increased demand for Bitcoin on one of the largest US-based cryptocurrency exchanges. On the other hand, a negative premium indicates a lack of significant buying pressure from US traders.
Since Coinbase is a popular entry point for up-to-date US cryptocurrency investors, the premium price indicates that money is flowing into Bitcoin. At the time of writing, data from CryptoQuant shows that this premium has recently reached 13.11. While this may seem minor, it definitely indicates the beginning of buying pressure that could send Bitcoin another leg higher
Interestingly, this shift to a positive Coinbase premium is associated with less sanguine sentiment towards Bitcoin among Korean and Asian investors, at least in the miniature term. This information is disclosed by CryptoQuant’s Korean premium indexwhich has been in a downward trend for two weeks.
Bitcoin is still going robust
At the time of writing, the price of Bitcoin is $71,095 and has increased by 4.31% due to increased purchasing dynamics, with Open interest in Bitcoin recently reached an all-time high. While a positive Coinbase premium is a bullish indicator, the context in which it occurs is of paramount importance in determining where Bitcoin’s price may go next.
Much of the positive premium can be attributed to individual enormous holders called whales, as the chain data shows instances massive Bitcoin transfers from Coinbase to unknown private wallets.
As mentioned earlier, continued positive premium and interest from institutions and retail buyers is the most promising scenario for Bitcoin to build on. However, interest from Coinbase whales alone may not be enough to trigger a long-term, significant price rally. For Bitcoin to continue its upward trend, there must be a corresponding boost interest of retail investors.
Featured image created with Dall.E, chart from Tradingview.com
