Over on Coinbase, the BTC premium flipped positive once more. After weeks of lingering in the red, the market had a brief spike to the $1 trillion mark. With a spike in Bitcoin premium on Coinbase, the largest cryptocurrency in the world saw notable gains. Moreover, some of the major altcoins raked it in as well.
The premium on Coinbase seems to be seeing some recovery, surging close to 0.075.
A Whale of an Accumulation?
According to data from CryptoQuant, a blockchain analytics company, the Coinbase Premium Index tapped positive territory for the second time since April of this year. The first spike happened on June 30, seeing the index hit 0.217, shortly before slipping back into the red.
Over the course of the past week, the BTC premium gap on Coinbase seemed to be improving. This suggests the potential for the selling pressure to dry up.
Coinbase Premium compares the price of BTC on Coinbase Pro (the professional trading platform) and Binance against the USD and Tether. Analysts and investors use this metric to gauge whale movement at the institutional level.
Generally speaking, a positive premium indicates that the whales are strengthening accumulation and continuing to buy at higher levels. Additionally, the trend is evidence of expanding interest in Coinbase as well as an increase in the activity of investors.
While this uptick is by no means a bull run, it proves the existence of institutional buyers in the price range, which is a positive signal to many.
Breaking Out of the Red Streak
Back in May, the BTC premium on the largest crypto exchange based in the US tanked to its lowest levels since 2019. This drop came amidst some intense market correction. Moreover, it led to BTC’s most volatile quarter in a decade, twice dropping below $20,000 in a single month.
Additionally, the death spiral of Terra tokens alongside the poor macroeconomic conditions was a precursor. Shortly after this, some of the most well-known crypto companies saw major staff layoffs, bankruptcy, and liquidation cases among lenders.
Despite this volatility, the cryptocurrency market seems to be recovering once more. Recently, Mike Novogratz, CEO of Galaxy Digital, stated that many of those deleveraging are “already out of the system.” Additionally, he believes there’s nothing in the cards for more downside price action.
However, in the event BTC does go down, Novogratz asserted that the “market might go sideways as it waits for a clear signal for reversal.”
So, will this spike in bitcoin premium over on Coinbase Pro herald stability? Only time will tell.