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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions
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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions

Data Suggests Buying On Coinbase Behind The Bitcoin Pump

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 2:21 pm
3 mins read
Bitcoin

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Data shows the Bitcoin Coinbase premium gap has surged up to positive values, suggesting that buying from investors on the exchange could be behind the pump to $22k.

Bitcoin Coinbase Premium Gap Observes Sharp Rise To Positive Values

As pointed out by an analyst in a CryptoQuant post, after many months of negative values, the Coinbase premium gap is now above zero.

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).

Since Coinbase is popularly used by US investors (especially institutionals), while Binance is used more in other parts of the world, the difference in BTC prices between the exchanges can suggest where the buying/sell pressure could be coming from.

When the value of the premium gap is greater than zero, it means the value of the crypto listed on Coinbase is currently more than on Binance. This suggests that US investors have recently been buying more compared to the rest of the world.

Related Reading | Bitcoin Miners Have Been Dumping, But Price Has Held So Far

On the other hand, negative values of the metric suggest US investors may be applying more selling pressure/lesser 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 couple of days:

Bitcoin Coinbase Premium Gap

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 seems to have observed a rise in the last 24 hours.

The indicator previously had a red value for many months, but now it seems the metric has once again returned to a positive value.

Related Reading | Rumors About Mt. Gox Effect On Bitcoin Resurface, Victims to Receive 150K BTC?

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 could suggest that buying pressure from investors in the US may be behind Bitcoin catching some new upwards momentum.

BTC Price

At the time of writing, Bitcoin’s price floats around $21.6k, up 12% in the last seven days. Over the past month, the crypto has lost 31% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

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 past $22k for the first time since mid-June. Since then, the crypto seems to have retraced back a little.

Featured image from Mariia Shalabaieva on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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