The post Bitcoin Coinbase Premium Sees Red Plunge: BTC Rally Done? appeared on BitcoinEthereumNews.com.

Data shows the Bitcoin Coinbase Premium Index has plunged into the negative territory alongside the latest asset price downturn. Bitcoin Coinbase Premium Index Is Currently In The Red Zone As explained by an analyst in a CryptoQuant Quicktake post, the Coinbase Premium Index has seen a decline recently. The “Coinbase Premium Index” refers to an indicator that keeps track of the percentage difference between the Bitcoin price listed on Coinbase (USD pair) and that on Binance (USDT pair). The value of this metric tells us how the buying or selling behaviors differ between the userbases of the two cryptocurrency exchange giants. To be more specific, Coinbase’s main traffic is US investors, especially the large institutional entities, while Binance has users from around the world, so the indicator compares the behavior of the American whales with the global ones. Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Index over the past week: The value of the metric appears to have been going down over the past day | Source: CryptoQuant The above graph shows that the Bitcoin Coinbase Premium Index has observed a sharp plunge into the negative territory during the last 24 hours. Coinciding with this drawdown in the indicator has been the crash in the cryptocurrency’s value itself. The negative indicator suggests the asset is observing a higher amount of selling pressure on Coinbase than on Binance. Thus, given the timing of the trend, it would appear the selling from the Coinbase users has been driving the price decline. This pattern has been observed throughout 2024; the price has shown notable correlation with the Coinbase Premium Index. As such, the Coinbase users, or the American institutional investors, have been in the driving seat. If the indicator’s value continues to be negative in the…

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Filed under: News - @ December 20, 2024 3:22 pm