Bitcoin Price Dropped With Coinbase Premium Turning Negative
As pointed out by an analyst in a CryptoQuant , the U.S. government’s recent movement may have played a role in the latest decline in BTC’s price. There are a couple of relevant indicators here: the Coinbase Premium and the Spent Output Age Bands (SOAB).The “Coinbase Premium” measures the difference between the Bitcoin price listed on the cryptocurrency exchange Coinbase and that listed on Binance. Coinbase is an exchange that’s popularly used by U.S.-based investors (especially large institutions), while Binance has a more global-oriented audience.
Looks like the value of the metric has gone down in recent days | Source:As displayed in the above graph, the Bitcoin Coinbase Premium has turned negative recently. This means that U.S. investors may have been putting some extraordinary selling pressure on the cryptocurrency during this period.
The chart also contains data for the other indicator of interest here, the “SOAB,” which tells us which age bands (or groups) in the market have been moving their coins recently.
Curiously, the 6m-12m age band, which includes all Bitcoin investors that have been holding onto their coins for at least 6 months and at most 12 months ago, has shown a large movement just a few days ago. As for the source of these aged coins, the quant explains, “the transaction is linked to bitcoins seized by the U.S. government because they are related to Silkroad.” The timing of this large Bitcoin transaction and the selling pressure rising on Coinbase is interesting and could suggest that there may be a link between the two. “It’s difficult to say what impact this transaction had on the price drop because we can’t see what’s happening on the exchange,” notes the analyst. “But everything suggests that it caused extra selling pressure.”BTC Price
At the time of writing, Bitcoin is trading around $19,800, down 11% in the last week.BTC has plunged over the past day or so | Source: