Bitcoin, the premier digital asset, is regaining traction as the Coinbase Premium Index turns positive. Despite a recent dip that saw Bitcoin fall below $50K, the rising Coinbase premium signals renewed interest and buying pressure in the US market. According to CryptoQuant, this uptick in the Coinbase Premium Index suggests strong demand from US investors.
The recent downturn in the crypto market, triggered by a crash in the USD stock market, saw Bitcoin’s value drop. However, with the Coinbase Premium Index now showing positive trends, Bitcoin’s price is climbing as demand surges in the US. US crypto traders favor Coinbase over Binance, so when the USD market faltered, it negatively impacted the crypto market. But now, the positive shift in the Coinbase Premium Index reflects a resurgence in buying pressure from US-based investors, pushing Bitcoin’s price upwards.
The Coinbase Premium Index measures the percentage difference between Bitcoin prices on Coinbase Pro (in USD) and Binance (in USDT). Given that many US investors use Coinbase, this index offers insight into market sentiment. As the USD market stabilizes, Bitcoin’s recovery is reflected in the increasing demand and upward price movement in the US market.
