The post Bitcoin Demand Sees Resurgence as Coinbase Premium Turns Positive Amid Increased Institutional Interest appeared on BitcoinEthereumNews.com.

The recent resurgence of the Coinbase premium signals a renewed interest in Bitcoin among U.S. investors, reflecting a dynamic shift in market sentiment. In a notable turn, the Coinbase premium turned positive for the first time since mid-October, underscoring an uptick in demand, particularly from institutional investors. According to CryptoQuant’s Head of Research, Julio Moreno, “Trump’s victory brought back U.S. investor bitcoin demand, and the Coinbase premium got positive for the first time since Oct. 18,” highlighting the political influence on market trends. This article explores the recent positive shift in the Coinbase premium and the implications of rising Bitcoin demand among U.S. institutional investors. Coinbase Premium Surge Indicates Growing U.S. Investor Confidence The Coinbase premium, a key indicator of U.S. investor sentiment, has turned positive, representing a significant shift in the demand dynamics for Bitcoin. This upward movement suggests increased buying interest from both retail and institutional investors, eager to capitalize on market fluctuations. Notable analyst insights indicate that this phenomenon follows pivotal events that impact investor psychology, including political developments. Institutional Demand Reflected in Record CME Bitcoin Futures Trading Volume Highlighting the changing landscape, the daily trading volume of CME Bitcoin futures reached an all-time high of $13.15 billion, as reported by K33 Research’s Vetle Lunde. This figure surpasses prior records, indicating that institutional investors are taking a more prominent role in Bitcoin trading. “Throughout 2024, CME’s trading activity has consistently outpaced offshore exchanges, showcasing a preference for the regulatory safety and compliance that CME offers,” Lunde noted. Options Market Sees Significant Growth Amid Institutional Activity The options market has also demonstrated a robust increase, with open interest soaring across all crypto derivatives exchanges to $25.2 billion. This nearing of the all-time high of $30.2 billion previously observed in March indicates a resurgence of activity fueled by institutional…

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Filed under: News - @ November 7, 2024 5:23 pm