Here’s Why Bitcoin Could Rally Soon Despite Negative Coinbase Premium: CryptoQuant

A key metric indicating that US investor interest in bitcoin turned negative on Friday.

Experts, however, believe that this turn could positively affect the price of BTC.

Coinbase Bitcoin Premium records a negative value

According to a CryptoQuant analyst report, Coinbase Premium recently registered a significant negative value. The Coinbase Premium Index is an indicator that measures the percentage difference between the price of bitcoin on Coinbase Pro and Binance.

Coinbase Pro is popular with US crypto traders as well as a number of institutional investors, while Binance, the largest crypto exchange by trading volume, caters to a more global audience. Thus, the index provides information on the trading behaviors of users of both platforms.

Historically, positive Coinbase Premium values ​​tend to suggest strong buying pressure from US investors. On the other hand, a negative change in the index indicates a decrease in demand for bitcoins from American investors.

BTC remains stable as buying pressure on Binance rises

According to the data, despite the decline in demand from US investors, the price of bitcoin has remained stable, indicating “that there is strong buying pressure on Binance”.

The CryptoQuant analyst noted that the price of bitcoin could see a massive increase if demand for the digital asset increases in global markets. The current movement of the market suggests that it could happen soon.

“For the price of Bitcoin to see a significant increase, buying pressure needs to expand beyond the US, driven by FOMO (Fear of Missing Out) in global markets. This move is quite positive,” said the analyst

Bitcoin has continued to rise following the US Fed’s interest rate cut on Wednesday. The leading cryptocurrency briefly crossed $64,000 today for the first time since last month.

The crypto asset briefly pulled back and is now trading at $62,800 at press time. If the uptrend continues, bitcoin could retest its all-time highs and there are several bullish factors. You can find more of this here.

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