Bitcoin Coinbase Premium Gap Plunged Into Negative During Past Day
As pointed out by CryptoQuant Netherlands community manager Maartunn in a on X, the Coinbase Premium Gap has now turned notably negative after being mostly positive for the last few days.The “Coinbase Premium Gap” refers to the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
Looks like the value of the metric has taken a plunge during the past day | Source:As displayed in the above graph, the Bitcoin Coinbase Premium Gap has observed a sharp plunge down into the negative territory during the past day or so. Before this plummet, the indicator had been mostly at positive values since the start of the year.
The price surges this year were being driven by the buyers on Coinbase, as the price rose every time the premium did as well. Coinbase is popularly known to be used by US institutional investors, so the green premium suggested that these large entities were buying, most likely in anticipation of the ETFs, which finally gained approval on January 10th.
A while after this approval, BTC went on to sharply rally toward the $49,000 level, but the asset’s run was very short-lived as its price plummeted hard back towards the price prior to the move, thus erasing all the gains.
The Coinbase Premium Gap had been notably positive alongside the surge, but the indicator then showed its plunge into the negative territory alongside this quick retrace. It would appear that some American institutional traders may have used the opportunity to harvest their profits.BTC Price
Bitcoin has been moving sideways since the quick rally and drawdown, as its price is still floating around the $45,800 level.The price of the coin seems to have shown an overall trend of consolidation recently | Source: