Data shows the Bitcoin Coinbase premium gap has widened to positive values, indicating that buying from investors on the exchange could be behind the pump for up to $22k.
Bitcoin Coinbase Premium Gap sees a sharp rise in positive values
As reported by an analyst in a Cryptoquant post, after several months of negative prices, the Coinbase premium gap is now above zero.
The “Coinbase Premium Gap” is an indicator that measures the difference between the price of Bitcoin on Coinbase Pro (USD pair) and the price of Binance (USDT pair).
Since Coinbase is popularly used by US investors (particularly institutional), while Binance is more commonly used in other parts of the world, the difference in BTC prices between exchanges may suggest that the buy/sell option Where can the pressure come from?
When the value of Premium Gap is greater than zero, it means that the crypto listed on Coinbase is currently valued higher than Binance. This suggests that US investors have been buying more recently than the rest of the world.
Related Reading | Bitcoin Miners Are Dumping, But the Price So Far
On the other hand, negative values of the metric suggest that US investors are applying more selling pressure/less buying pressure on the market at the moment.
Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium gap over the past few days:
The value of the indicator seems to have spiked up over the past day| Source: CryptoQuant
As you can see in the above graph, the bitcoin coinbase premium gap has seen an increase over the past 24 hours.
The indicator previously had a red value for several months, but now it seems that the metric has returned to a positive value once again.
Related Reading | Rumors About Mt Gox Effect On Bitcoin Resurgence, Will Victims Receive 150K BTC?
Furthermore, it is clear from the chart that the latest pump in the price of the crypto happened concurrently with this spike in premium differentials.
This could suggest that investor pressure in the US may be behind bitcoin’s catching of some of the new upward momentum.
At the time of writing, bitcoin price is floating around $21.6k, up 12% over the past seven days. In the past month, crypto has lost 31% in value.
The chart below shows the coin’s price trend over the past five days.
Looks like the value of the crypto has surged up during the last couple of days | Source: BTCUSD on TradingView
Earlier in the day, bitcoin broke $22k for the first time since mid-June. Since then, crypto seems to have retreated a bit.
Featured image from Mariia Shalabaieva on Unsplash.com, charts from TradingView.com, CryptoQuant.com