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Coinbase Data Indicates Institutional Investors Are Buying Bitcoin Again

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Bitcoin price remains above $70,000 despite the long holiday weekend. The cryptocurrency market saw mostly moderate activity amid some economic events, including the release of US PCE inflation, which was slightly intense. The total crypto market volume in the last 24 hours has fallen by more than 15%. However, the difference in Coinbase’s premium indicates that institutional investors are buying again.

Coinbase Premium Gap indicates Bitcoin purchase

Institutional purchases began to slow on March 27 and Coinbase’s premium gap turned green again late on March 29 after the Federal Reserve favored the PCE inflation indicator. On the morning of March 30, Coinbase’s premium difference exceeded 50, on-chain analyst Maartunn revealed. He claims that US institutions may have started buying Bitcoin again.

The metric is commonly used to determine when US institutions start buying Bitcoin as it is a very accurate indicator. This suggests chances of high inflows into spot Bitcoin ETFs next week ahead of the Bitcoin halving, which is expected to take place in mid-April.

The Coinbase premium gap is the difference between the Coinbase Pro price (USD pair) and the Binance price (USDT pair). High premium values generally indicate strong buying pressure from US investors on the Coinbase cryptocurrency exchange. Traders can closely monitor metrics and trading volumes to confirm market direction.

Analysts remain bullish on BTC price

Ryze Labs analysts revealed that the gap between hedge funds (in purple) and asset managers (in red) continues to widen. “This divergence indicates that while asset managers continue to buy Bitcoin futures, hedge funds are increasingly selling short. In the current bullish mood, this dynamic suggests a possible squeeze in selling, which could fuel Bitcoin’s next move higher,” they said.

Popular analyst Michael van de Poppe said that Bitcoin’s sideways action caused a consolidation near $70,000. However, it ensures that Bitcoin follows the general 4-year cycle. He added: “Honestly, this cycle is probably going to surprise a lot of people. “In five years, $70,000 per Bitcoin will be classified as cheap.”

Meanwhile, futures and options purchases remain dull due to the holidays and traders expect a further drop in the BTC price. CME BTC futures open interest fell 0.32% to $11.64 billion. Total BTC open interest fell from $32.31 billion to $21.52 billion.

BTC price is moving sideways and currently the price is trading at $70,189. The 24-hour low and high are $69,076 and $70,513, respectively. Furthermore, turnover fell by more than 25%.

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