According to data, the Bitcoin Coinbase premium gaps have increased to positive values. This suggests that Bitcoin Coinbase investors may be responsible for the $22k increase.
Bitcoin Coinbase Premium Gap Observes Sharp Rise To Positive Values
An analyst pointed out in CryptoQuant that the Coinbase premium gap has increased to zero after months of declining values.
The “Coinbase premium gap” is an indicator that measures the difference between the Bitcoin price on Coinbase Pro (USD pair) and the value on Binance (USDT pair).
Coinbase is used by US institutional investors, while Binance is preferred in the rest of the world. The difference in BTC price between exchanges could indicate the source of buying and selling pressure.
If the premium gap value is higher than zero it indicates that the cryptocurrency listed on Coinbase has a greater value than the one on Binance. This indicates that US investors are buying more cryptocurrency than other countries.
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Conversely, negative results of this metric could indicate that US investors are applying less buying pressure and more selling pressure to the market.
Here’s a chart showing the Bitcoin Coinbase premium gap trend over the last few days.
Over the last day, the value of this indicator appears to have risen. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Bitcoin Coinbase premium gap has seen a rise over the past 24 hours.
The indicator had previously been a red indicator for several months. But, now the indicator seems to have returned back to a positive value.
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Also, it’s apparent from the chart that the latest pump in the price of the crypto looks to have occurred concurrently with this spike in the premium gap.
This may indicate that Bitcoin is experiencing new upwards pressure due to investors in the US.
BTC Prices
At the time of writing, Bitcoin’s price floats around $21.6k, up 12% in the last seven days. The crypto’s value has dropped 31% over the last month.
Below is a chart showing the change in coin price over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin crossed $22k earlier in the day for the first-time since June. Bitcoin seems to have made a slight reversal since that time.
Image by Mariia Shalabaieva, Charts from TradingView.com and CryptoQuant.com