Emily Walker
Recent findings from CryptoQuant indicate that institutional investors have largely contributed to the recent Bitcoin price surge, pushing it above the $100,000 mark.
Recent Trends in the Bitcoin Coinbase Premium Index
In a recent post on X, CryptoQuant explored the current movements in the Bitcoin Coinbase Premium Index. This index measures the price difference between Bitcoin on Coinbase (USD) and Binance (USDT).
The index provides insights into the purchasing and selling activities of users on these major cryptocurrency exchanges. Coinbase mainly attracts US investors, particularly large institutional buyers, while Binance serves a global clientele.
A positive Coinbase Premium Index indicates that Bitcoin is priced higher on Coinbase compared to Binance, suggesting stronger buying or less selling pressure from American investors relative to global traders.
Conversely, a negative reading implies that users on Binance are purchasing more Bitcoin, as its price there is higher.
Below is a chart that illustrates the Bitcoin Coinbase Premium Index trend over the previous year:
The chart indicates a significant rise in the Coinbase Premium Index at the beginning of November, with consistent positive trends, except for a minor drop.
This suggests ongoing higher buying interest from Coinbase users compared to those on Binance, correlating with a notable increase in Bitcoin’s price, driven by accumulation from US investors.
Similar patterns have been observed throughout the past year, where spikes in the Coinbase Premium Index typically correlate with bullish sentiment for Bitcoin.
Most recently, Bitcoin reached an all-time high (ATH) of over $104,000, coinciding with another increase in the index. This trend highlights the influential role of American institutional investors in the market.
Monitoring the Coinbase Premium Index will be crucial moving forward, as potential shifts could foreshadow changes in Bitcoin’s pricing.
Current Bitcoin Price
As of now, Bitcoin is priced around $100,800, reflecting an increase of over 6% in the last week.