Bitcoin Coinbase Premium Index Has Turned Positive At 0.006, Why This Is Important



The
Bitcoin
recent
foray
into
$70,000
price
territory
has
again
become
a
hot
topic
among
investors,
with
many
looking
at
a
positive
price
outlook.
As
a
result
of
this
fascinating
price
action,
the
vast
majority
of


long-term
holders


have
seen
their
holdings


cross
into
profit
zone
.
Particularly,
the
positive
outlook
seems
to
be
positive
among
US-based
investors,
as
shown
by
the
Coinbase
premium
turning
positive.
Some
see
the
return
of
the
Coinbase
premium
as
a
bullish
signal
that
could
continue
to
drive
the
price
higher.

How To Get Free Crypto  

Coinbase
Premium
Index
Flips
Positive


The
Coinbase
Premium
Index
(CPI),
which
had
been
trading
in
the
negative
since
May
18,
has
now
turned
positive,
according
to
a


cryptocurrency
analyst


who
cited
data
from
CryptoQuant.
The
Coinbase
Premium
refers
to
the
difference
in
Bitcoin’s
price
on
Coinbase
versus
other
major
exchanges.


Related
Reading


When
the
premium
turns
positive,
it
means
Bitcoin
is
trading
at
a
higher
price
on
Coinbase
compared
to
Binance
and,
subsequently,
other
major
crypto
exchanges.
This
is
important
because
it
shows
increased
demand
for
Bitcoin
on
one
of
the
largest
US-based
crypto
exchanges.
On
the
other
hand,
a
negative
premium
indicates
a
lack
of
substantial
buying
pressure
from
US-based
traders.


Since
Coinbase
is
a
popular
entry
point
for
new
US
crypto
investors,
a
premium
price
indicates
money
is
flowing
into
Bitcoin.
At
the
time
of
writing,
data
from
CryptoQuant
shows
that
this
premium
recently
reached
13.11.
While
this
may
seem
small,
it
definitely
indicates
the
beginning
of
buying
pressure
that
could
send
Bitcoin
on
another
leg
higher

Coinbase Banner  


Interestingly,
this
flip
into
a
positive
Coinbase
premium
has
come
with
a
less
bullish
outlook
on
Bitcoin
among
Korean
and
Asian-based
investors,
at
least
in
the
short
term.
This
information
is
revealed
by
CryptoQuant’s


Korea
Premium
Index
,
which
has
been
on
a
downtrend
in
the
past
two
weeks.

Bitcoin
Continues
To
Hold
Strong


At
the
time
of
writing,
Bitcoin
is
trading
at
$71,095
and
is
up
by
4.31%
amidst
increased
buying
momentum,
with
the


Bitcoin
Open
Interest


recently
reaching
its
all-time
high.
While
a
positive
Coinbase
Premium
is
a
bullish
indicator,
the
context
around
why
it’s
happening
matters
greatly
in
determining
where
Bitcoin’s
price
may
go
next.


Related
Reading


A
large
part
of
the
positive
premium
could
be
attributed
to
individual
large
holders
called
whales,
with
on-chain
data
showing

FreeBitcoin Banner  


instances


of
huge
Bitcoin
transfers
from
Coinbase
to
unknown
private
wallets. 


As
mentioned
earlier,
a
sustained
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
fuel
a
prolonged,
substantial
price
rally.
For
Bitcoin
to
continue
its
upward
trajectory,
there
must
be
a
corresponding
rise
in
the


interest
shown
by
retail
investors.

BTC
price
rises
to
$71,500
|
Source:

BTCUSD
on
Tradingview.com

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson


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