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Bitcoin’s Coinbase Premium Skyrockets. What Does It Mean?
Alex Dobnya
According to this data, Bitcoin is in the midst of a healthy spot-driven rally
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Pseudonymous market analyst HornHairs has noticed that Bitcoin saw its highest Coinbase premium in two months.
This indicates that the current rally is driven mainly by spot buying.
The Coinbase Premium measures the difference between the price of the top cryptocurrency on Coinbase and Binance.
When the price of Bitcoin is higher on the major US stock exchange, it means that US investors are primarily responsible for the buying pressure.
Furthermore, it is worth noting that spot-driven rallies are considered much safer than leverage-driven ones. Cryptocurrency rallies driven by risky and speculative derivatives are less healthy.
AS reported by U.TodayThe market has recently suffered from a massive wave of selling that started in Saxony, a state in the eastern part of Germany. However, the market has been able to absorb most of these sales.
In particular, spot Bitcoin exchange-traded funds (ETFs) have attracted nearly $900 million this week, showing their best performance since May. This once again confirms that there is strong demand for Bitcoin among US buyers.
According to CoinGecko data, the top cryptocurrency by market cap is currently trading at $60,019.40, after hitting an intraday high of $60,373.
Despite the significant recovery, the sentiment indicator “Fear and Greed” continues to show “fear” with 30 points out of 100, according to the latest update.
Bulls may be hoping for a quick recovery after the end of the Saxony Bitcoin sell-off and encouraging US macroeconomic data. However, there are also concerns on the lack of a clear bullish catalyst that could push prices higher.
About the author
Alex Dobnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything from price analysis to Blockchain disruption. Alex has written over 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets, and can be reached at alex.dovbnya@u.today.