Emily Walker
Recent data indicates that the Bitcoin Coinbase Premium Gap has entered negative territory after Bitcoin surged past $98,000.
Significant Drop in Bitcoin Coinbase Premium Gap
According to a recent analysis by CryptoQuant community member Maartunn, the previously positive Coinbase Premium Gap has vanished. This metric gauges the difference between Bitcoin prices on Coinbase (against USD) and Binance (against USDT).
A positive value suggests that Bitcoin on Coinbase costs more than on Binance, indicating stronger buying or weaker selling on Coinbase.
Conversely, when the metric drops below zero, it indicates that Binance is seeing more buying interest, with BTC trading at a higher price there compared to Coinbase.
Below is a chart illustrating the changes in the Bitcoin Coinbase Premium Gap over recent days:
The chart shows that the Bitcoin Coinbase Premium Gap remained positive for the past two days, indicating considerable buying activity. During this time, Bitcoin reached a new all-time high (ATH) above $98,000. However, since that peak, the gap has declined, dipping a bit into the negative range.
Throughout 2024, a positive Coinbase Premium Gap has generally spurred bullish trends for Bitcoin, while negative values have typically been concerning for the asset’s performance.
Coinbase serves as the primary trading platform for American investors, particularly institutional ones, while Binance has a broader international appeal. Thus, the Coinbase Premium Gap provides insights into the differing behaviors of US-based and international investors.
Given the established correlation between this metric and Bitcoin’s performance this year, it appears that American institutional investors have been heavily influencing the market. The recent decline into neutral-negative territory may indicate that these investors have paused their buying activity, potentially leading to a slowdown in Bitcoin’s upward movement.
However, this metric will remain crucial to monitor in the upcoming days, as a shift back to positive levels could signal renewed bullish momentum.
In related news, a whale recently transferred 500 BTC, which has been held for between 7 to 10 years, as noted by Maartunn in an X post.
Such transactions involving older coins typically indicate that long-term holders are considering selling. Therefore, this move, valued at over $49 million, may reflect a whale cashing in on substantial profits.
Current BTC Price
At the time of writing, Bitcoin is trading around $98,000, marking an increase of over 10% in the past week.