The post Bitcoin Coinbase Premium Index Flips Positive As Market Euphoria Increases, A Rally Imminent? appeared on BitcoinEthereumNews.com.

With a significant move at the start of the week, Bitcoin has revisited the pivotal $100,000 milestone once again. This move has triggered a wave of fresh optimism among crypto enthusiasts as several key metrics have also seen positive movements alongside the recent upswing. BTC’s Market Dynamics Undergoes A Shift Bitcoin’s market dynamics are showing signs of a bullish shift as the Coinbase Premium Index metric moves in a positive direction. The recent upsurge in Bitcoin’s price appears to have triggered a notable change in the critical metric. This index, which reflects the price difference between Bitcoin on Coinbase and other crypto exchanges, often serves as an indicator of increased demand from US-based institutional investors. As the metric turns positive, this shift suggests renewed market confidence in Bitcoin’s prospects, which could catalyze its next price rally. It is important to note that the development comes after the Coinbase Premium Index witnessed a persistent decline, falling to a 12-month low. Just before the US Presidential elections, the metric fell as low as -0.200 in October last year due to increased uncertainty within the sector. Meanwhile, on the last day of 2024, the index dropped even more to about -0.237, the lowest level in the past 12 months. Furthermore, the sharp drop was fueled by heightened selling pressure in the US markets after BTC declined to the $91,500 price level. Typically, a huge decrease in the Coinbase Premium Index can lead to an unfavorable environment for Bitcoin’s short-term price trajectory. Coinbase Premium Index rebounds | Source: CryptoQuant on X With the key metric turning positive for the first time in 2025 in tandem with a surge above $102,000, BTC’s near-term prospects look promising once again. Data from leading on-chain analytics firm CryptoQuant shows that the index has risen to nearly 0.001. Addressing…

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Filed under: News - @ January 8, 2025 12:18 am