Bitcoin Coinbase Premium Index (7-Day SMA) Has Been Going Up Recently
According to shared by Julio Moreno, the Head of Research at CryptoQuant, the Coinbase Premium Index has been sharply trending up recently. The “Coinbase Premium Index” here refers to a metric that keeps track of the percentage difference between the Bitcoin price listed on Coinbase (USD pair) and that listed on Binance (USDT pair).
This metric can help us know which platform’s user base is buying or selling more of the asset. For example, when the index’s value is greater than zero, it means that an extra amount of buying pressure has been present on Coinbase, which has pushed the asset’s price up on the platform (or just a lower amount of selling pressure than on Binance is there on Coinbase).The 7-day value of the metric seems to have been rising in recent days | Source:As displayed in the above graph, the 7-day SMA Bitcoin Coinbase Premium Index has only been negative this month, implying that the global investors have either outpaced the US traders in accumulation or the Americans have been selling to a higher degree.
Recently, however, as news has started to come out that the probability of the BTC spot ETFs being approved in the US is increasing, the indicator has turned around and is now heading up.
The Grayscale Bitcoin Trust (GBTC) Premium, a metric that checks for whether GBTC is trading at a premium or a discount, has also been trending up recently, implying that the discount on the fund is decreasing (although it’s not near the positive territory yet unlike the Coinbase Premium Index).
Looks like the metric's value is becoming less negative | Source:GBTC is a fund that allows users to get indirect exposure to Bitcoin in a way that traditional investors would be more familiar with. Thus, this metric holds hints about the buying or selling activity in which the more conventional US institutional traders are currently participating.
BTC Price
At the time of writing, Bitcoin is trading around $29,800, up 1% in the last week.BTC has observed some uplift during the past day | Source: