Emily Walker
The data concerning the Bitcoin Coinbase Premium Gap may provide insights into the driving forces behind the recent bullish price movements observed over the weekend.
Negative Trends in the Bitcoin Coinbase Premium Gap This Weekend
An analyst highlighted the recent developments in the Bitcoin Coinbase Premium Gap in a post on CryptoQuant. The “Coinbase Premium Gap” measures the price difference between Bitcoin on Coinbase (USD) and Binance (USDT).
A positive gap indicates that Bitcoin is valued higher on Coinbase, suggesting that Coinbase users are actively buying more or selling less compared to those on Binance.
Conversely, a negative gap implies that Binance is experiencing greater buying activity, as its prices are higher than Coinbase’s.
The following chart illustrates the trend of the Bitcoin Coinbase Premium Gap during the weekend:
The chart indicates that the Bitcoin Coinbase Premium Gap has largely stayed positive recently, though there have been notable dips into negative territory. These dips were followed by upward price movements in Bitcoin, suggesting a surge of buying on Binance contributed to the price increases.
Additionally, outside of these dips, Coinbase users have consistently shown strong buying pressure, akin to other bullish trends this year. Coinbase predominantly attracts American investors, particularly large institutional players, while Binance serves a more diverse global audience. Thus, the Coinbase Premium Gap illustrates the differing behaviors of U.S.-based whales versus international investors.
Notably, around the time of the U.S. presidential election results, the gap spiked to significant positive levels as Coinbase traders reacted to domestic news.
Despite Coinbase’s users leading the market since then, Binance whales have not become irrelevant, as highlighted by their impact on prices over the weekend.
It will be interesting to observe how this indicator evolves moving forward, particularly as the Bitcoin rally continues and whether further negative dips will occur.
Current BTC Price Overview
Earlier in the day, Bitcoin temporarily surpassed the $82,000 milestone, achieving a new all-time high. Following this peak, it experienced a slight retreat, now sitting at $81,900.