After weeks of red mark, the market briefly climbed to the $1 trillion mark. The world’s largest cryptocurrency – bitcoin – as well as some major altcoins, rose in notable gains. Additionally, Coinbase’s bitcoin price premium also seems to be recovering after moving up near 0.075.
potential whale accumulation
according to information The Coinbase Premium Index, from blockchain analytics company Cryptoquant, has stepped into positive territory for the second time since April 2022. The index reached 0.217 for the first time on 30 June, shortly after which it returned to the red zone.
coinbase $BTC Price premium seems to be recovering. https://t.co/Xkoohe4Ozc https://t.co/ZEorApSlTT pic.twitter.com/SDEIn1IkPz
— Ki Young Ju (@ki_young_ju) 8 July 2022
Over the past week, the bitcoin coinbase premium gap also seems to be improving. This suggested that the selling pressure may dry up.
Coinbase Premium – which compares the price of bitcoin against Tether and USD on Binance and Coinbase Pro (Coinbase’s professional trading platform) – is a metric used to measure institutional whale movement.
A positive premium essentially indicates that whales are consolidating their accumulation and continue to buy at higher levels. Furthermore, this trend is also evidence of increasing investor interest and activism in Coinbase.
While the latest uptrend is suggestive of a bull run, it shows that there are institutional buyers in the price range.
break red line
In May, BTC premiums on the largest US-headquartered cryptocurrency exchange fell to the lowest (negative) level since 2019 amid a sharp correction in the market. Bitcoin saw its most violent quarter of the decade dumping below $20,000 twice in June alone.
The death spiral of the Terra Ecosystem token coupled with dire macroeconomic conditions was just the harbinger. This was followed by layoffs from well-known crypto companies, as well as bankruptcy and liquidation from digital asset lenders.
Despite the volatility, the crypto market is recovering again. Galaxy Digital CEO Mike Novogratz recently said that most deleveraging is “already out of the system,” and that a potential case for more downside price action doesn’t appear in the cards. However, in cases where bitcoin goes down, the investor stressed that “the market could go sideways as it waits for a clear signal for a reversal.”
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