{"id":648342,"date":"2024-10-17T10:00:02","date_gmt":"2024-10-17T10:00:02","guid":{"rendered":"https:\/\/www.uniquehot.com\/?p=648342"},"modified":"2024-10-16T18:57:17","modified_gmt":"2024-10-16T18:57:17","slug":"bitcoin-coinbase-premium-negative-68000-rally-means","status":"publish","type":"post","link":"https:\/\/www.uniquehot.com\/bitcoin-news\/bitcoin-coinbase-premium-negative-68000-rally-means\/","title":{"rendered":"Bitcoin Coinbase Premium Is Negative Despite $68,000 Rally: What It Means"},"content":{"rendered":"

Data shows the Bitcoin Coinbase Premium Index has remained negative during the rally to $68,000. Here’s what this could mean for the asset.<\/p>\n

Bitcoin Coinbase Premium Index Is Currently Showing Red Values<\/h2>\n

As explained by an analyst in a CryptoQuant Quicktake post<\/a>, the BTC Coinbase Premium Index is inside the negative zone right now. The “Coinbase Premium Index<\/a>” is an indicator that measures the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).<\/p>\n

When the value of this metric is positive, it means the BTC price listed on Coinbase is currently higher than that on Binance. Such a trend suggests the former is observing a higher buying pressure (or a lower selling pressure) than the latter.<\/p>\n

Related Reading: Bitcoin Extreme Greed Is Nearly Here: Will This Lead To A Top?<\/a><\/div>\n

On the other hand, the negative indicator implies that Coinbase users are participating in a higher degree of selling than Binance ones, as the coin is trading at a lower rate there.<\/p>\n

Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Index over the last few months:<\/p>\n

\"Bitcoin
The value of the metric appears to have been on the decline in recent days | Source: CryptoQuant<\/a><\/figcaption><\/figure>\n

As displayed in the above graph, the Bitcoin Coinbase Premium Index has shown an interesting relationship with price until recently. It would appear that whenever the metric would assume positive values, the asset would rally, and whenever it would dip into the negative territory, the price would also plunge.<\/p>\n

This pattern extends beyond the chart window, as 2024 in its entirety has generally shown the two moving with notable correlation. The trend naturally suggests that Coinbase users have been potential market drivers, as the changes in their behavior have been inducing price action.<\/p>\n

Coinbase is the preferred platform of investors based in the US, especially large institutional entities<\/a>, while Binance is the hub of global investors. As such, the index’s value tells us about how the behavior of American whales differs from the rest of the world.<\/p>\n

While the US-based institutional investors have been key for much of 2024, the pattern appears to have diverged recently. The chart shows that as the latest rally in the Bitcoin price has occurred, the indicator’s value has been red.<\/p>\n

This isn’t the only pattern that has been broken, as the index also tends to turn green whenever the spot exchange-traded funds (ETFs)<\/a> witness inflows. The spot ETFs have seen significant net inflows recently, but the metric’s value has not flipped.<\/p>\n

“This raises the question of whether investors on Binance, whether retailers, institutions, or whales, are surpassing the buying pressure on Coinbase Pro,” notes the quant.<\/p>\n

Related Reading: Ethereum Open Interest Sees Fastest Rise In 5 Months: Brace For More Volatility?<\/a><\/div>\n

It remains to be seen if the index and the price will continue to show a divergence shortly, implying a possible shift in market structure away from being Coinbase-dominated, or if it’s just a temporary deviation.<\/p>\n

BTC Price<\/h2>\n

Bitcoin has continued its recent bullish push during the past day, as its price has now reached $68,000.<\/p>\n

\"Bitcoin
The price of the coin appears to have been marching up recently | Source: BTCUSDT on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Data shows the Bitcoin Coinbase Premium Index has remained negative during the rally to $68,000. Here’s what this could mean for the asset. Bitcoin Coinbase Premium Index Is Currently Showing Red Values As explained by an analyst in a CryptoQuant Quicktake post, the BTC Coinbase Premium Index is inside the negative zone right now. The “Coinbase Premium Index” is an indicator that measures the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair). When the value of this metric is positive, it means the BTC price listed on Coinbase is currently higher than that on Binance. Such a trend suggests the former is observing a higher buying pressure (or a lower selling pressure) than the latter. Related Reading: Bitcoin Extreme Greed Is Nearly Here: Will This Lead To A Top? On the other hand, the negative indicator implies that Coinbase users are participating in a higher degree of selling than Binance ones, as the coin is trading at a lower rate there. Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Index over the last few months: As displayed in the above graph, the Bitcoin Coinbase Premium Index has shown an interesting relationship with price until recently. It would appear that whenever the metric would assume positive values, the asset would rally, and whenever it would dip into the negative territory, the price would also plunge. This pattern extends beyond the chart window, as 2024 in its entirety has generally shown the two moving with notable correlation. The trend naturally suggests that Coinbase users have been potential market drivers, as the changes in their behavior have been inducing price action. Coinbase is the preferred platform of investors based in the US, especially large institutional entities, while Binance is the hub of global investors. As such, the index’s value tells us about how the behavior of American whales differs from the rest of the world. While the US-based institutional investors have been key for much of 2024, the pattern appears to have diverged recently. The chart shows that as the latest rally in the Bitcoin price has occurred, the indicator’s value has been red. This isn’t the only pattern that has been broken, as the index also tends to turn green whenever the spot exchange-traded funds (ETFs) witness inflows. The spot ETFs have seen significant net inflows recently, but the metric’s value has not flipped. “This raises the question of whether investors on Binance, whether retailers, institutions, or whales, are surpassing the buying pressure on Coinbase Pro,” notes the quant. Related Reading: Ethereum Open Interest Sees Fastest Rise In 5 Months: Brace For More Volatility? It remains to be seen if the index and the price will continue to show a divergence shortly, implying a possible shift in market structure away from being Coinbase-dominated, or if it’s just a temporary deviation. BTC Price Bitcoin has continued its recent bullish push during the past day, as its price has now reached $68,000. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":648357,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,87965,87373,6481,1119,78790,1393],"class_list":["post-648342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-coinbase-premium","tag-bitcoin-coinbase-premium-index","tag-bitcoin-rally","tag-btc","tag-btcusdt","tag-coinbase"],"acf":[],"yoast_head":"\nBitcoin Coinbase Premium Is Negative Despite $68,000 Rally: What It Means<\/title>\n<meta name=\"description\" content=\"Data shows the Bitcoin Coinbase Premium Index has remained negative during the rally to $68,000. 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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/www.uniquehot.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Bitcoin Coinbase Premium Is Negative Despite $68,000 Rally: What It Means","url":"http:\/\/www.uniquehot.com\/bitcoin-news\/bitcoin-coinbase-premium-negative-68000-rally-means\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.uniquehot.com\/bitcoin-news\/bitcoin-coinbase-premium-negative-68000-rally-means\/"},"thumbnailUrl":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2024\/10\/btc_4fb075.png?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2024\/10\/btc_4fb075.png?fit=1792%2C1024"},"articleSection":"Bitcoin News","author":[{"@type":"Person","name":"Keshav Verma"}],"creator":["Keshav Verma"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin coinbase premium","bitcoin coinbase premium index","bitcoin rally","btc","btcusdt","coinbase"],"dateCreated":"2024-10-17T10:00:02Z","datePublished":"2024-10-17T10:00:02Z","dateModified":"2024-10-17T10:00:02Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Bitcoin Coinbase Premium Is Negative Despite $68,000 Rally: What It Means\",\"url\":\"http:\\\/\\\/www.uniquehot.com\\\/bitcoin-news\\\/bitcoin-coinbase-premium-negative-68000-rally-means\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.uniquehot.com\\\/bitcoin-news\\\/bitcoin-coinbase-premium-negative-68000-rally-means\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.uniquehot.com\\\/wp-content\\\/uploads\\\/2024\\\/10\\\/btc_4fb075.png?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.uniquehot.com\\\/wp-content\\\/uploads\\\/2024\\\/10\\\/btc_4fb075.png?fit=1792%2C1024\"},\"articleSection\":\"Bitcoin News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Keshav Verma\"}],\"creator\":[\"Keshav Verma\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/www.uniquehot.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin coinbase premium\",\"bitcoin coinbase premium index\",\"bitcoin rally\",\"btc\",\"btcusdt\",\"coinbase\"],\"dateCreated\":\"2024-10-17T10:00:02Z\",\"datePublished\":\"2024-10-17T10:00:02Z\",\"dateModified\":\"2024-10-17T10:00:02Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/uniquehot.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.uniquehot.com\/wp-content\/uploads\/2024\/10\/btc_4fb075.png?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/posts\/648342"}],"collection":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/users\/542"}],"replies":[{"embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/comments?post=648342"}],"version-history":[{"count":5,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/posts\/648342\/revisions"}],"predecessor-version":[{"id":648407,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/posts\/648342\/revisions\/648407"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/media\/648357"}],"wp:attachment":[{"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/media?parent=648342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/categories?post=648342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.uniquehot.com\/wp-json\/wp\/v2\/tags?post=648342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}