A key metric indicating US investors' interest in bitcoin turned negative on Friday, which experts believe could positively impact BTC’s price.
Negative Coinbase Premium
According to a report by a CryptoQuant analyst, the Coinbase Premium recently recorded a significant negative value. The Coinbase Premium Index measures the percentage difference between the price of bitcoin on Coinbase Pro and Binance. Coinbase Pro is popular among crypto traders in the United States and several institutional investors, while Binance caters to a more global audience. Thus, the index provides insight into the trading behaviors of users on both platforms. Historically, positive Coinbase Premium values typically suggest strong buying pressure from U.S. investors. On the other hand, a negative shift in the index indicates a decline in demand for bitcoin from U.S. investors.
BTC Remains Stable Amid Buying Pressure
Per the data, despite waning demand from US investors, bitcoin's price has remained stable, indicating that there is strong buying pressure occurring on Binance. The CryptoQuant analyst pointed out that bitcoin's price could see a massive surge if demand for the digital assets increases across global markets. The present market movement hints that it might happen soon.
Possible Bitcoin Growth
Bitcoin has continued to rally following the US Fed interest rate cut on Wednesday. The leading cryptocurrency briefly crossed $64,000 earlier today for the first time since last month. The crypto asset has briefly retracted and is now trading at $62,800 at press time. If the upward trend continues, bitcoin could retest its all-time highs, and there are several bullish factors going its way.
The negative Coinbase Premium suggests declining interest from US investors, but strong buying pressure on Binance could positively impact the cryptocurrency's price in the near future.
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