Coinbase Premium Index Points to Strong US Interest as Bitcoin Gains

Bitcoin broke its previous record to briefly surpass a new peak of $75,000 as Donald Trump is set to become the 47th president of the United States.

Amid what is considered a massive win for the crypto industry, the Coinbase Premium Index saw a positive surge, indicating a potential increase in demand for Bitcoin in the US.

Coinbase Premium Index Points

The “Coinbase Premium Index” tracks the price difference between Bitcoin on Coinbase, an exchange popular with US users and many institutional investors, and Binance, the largest platform by trading volume. According to CryptoQuant’s latest update, the index turned positive during early Asian trading hours on Wednesday, rising to 0.06, its highest level since September 14.

Since then, the number has dropped to 0.04. However, this premium on Coinbase often points to solid buying pressure from US traders and institutional investors, supporting a potentially more sustainable Bitcoin rally.

In its latest note to investors, QCP Capital expressed confidence that Bitcoin’s bullish momentum will remain strong as the market heads into 2025. The digital asset trading firm stated:

“The crypto market has been on fire with BTC hitting an all-time high of 75k after touching its previous high of 73.5k, set back on March 14. Since then, BTC has mostly traded within a range of adjusted below 70k.

Notably, BTC has now navigated three election cycles since its inception in 2009, each followed by rallies to new highs, with prices never returning to pre-election levels. We expect this bullish momentum to remain strong as we head into 2025.”

State of the Traditional Market Post-Trump Victory

In addition to Bitcoin’s rally, Trump’s victory has also affected traditional markets. QCP Capital revealed that the dollar rose 1.2% to its highest level since July at 105. Meanwhile, bond yields also rose as markets expect stronger economic growth and a higher tax expenditure.

The 10-year Treasury yield rose 15 basis points and the 2-year yield gained 8 basis points, reflecting increased investor optimism. Despite Trump’s “friendlier” policy proposals, which may reduce the likelihood of rate cuts, the market still expects 1.8 cuts this year and three additional cuts next year.

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