The data shows that Bitcoin Coinbase’s premium gap has widened to positive levels, suggesting investors buying on the exchange for as much as $22,000 could be behind the pump.
Bitcoin Coinbase Premium Gap sees a sharp rise in positive readings
As one analyst reported in a Cryptoquant post, the Coinbase premium gap is now above zero after several months of negative prices.
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 widely used by US investors (particularly institutional ones), while Binance is more widely used in other parts of the world, the difference in BTC prices between exchanges could indicate that the buy/put option is where the pressure may be coming from ?
If 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 than the rest of the world recently.
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On the other hand, negative readings on the metric suggest that US investors are currently putting more selling/less buying pressure on the market.
Now here is a chart showing the trend of the Bitcoin Coinbase Premium gap over the past few days:
It seems that the value of the indicator has increased over the past few days. Source: Cryptoquant
As you can see in the chart above, the bitcoin-coinbase premium gap has widened in the last 24 hours.
The indicator was previously in the red for several months, but now the metric seems to have returned to a positive value.
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Additionally, the chart shows that the recent surge in crypto price happened concurrently with this surge in premium differentials.
This could indicate that investor pressure in the US could be responsible for bitcoin catching some of the new bullish momentum.
BTC price
At the time of writing, bitcoin price is hovering around $21.6k, up 12% over the past seven days. Over the past month, crypto has lost 31% in value.
The chart below shows the coin’s price action over the past five days.
It seems that the value of crypto has increased over the past few days. Source: BTCUSD on TradingView
Earlier in the day, Bitcoin broke through $22,000 for the first time since mid-June. Since then, crypto seems to have retreated somewhat.
Featured image by Maria Shalabaieva on Unsplash.com, charts by TradingView.com, CryptoQuant.com
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