The Coinbase Premium Index reflects Bitcoin demand in the United States by tracking activity on Coinbase, a leading North American exchange. Historically, short-term price trends have been predicted using momentum analysis with moving averages. However, over the past two weeks, a notable divergence has formed between the Coinbase Premium Index and Bitcoin's price.
North American investor demand has become increasingly significant, particularly with the launch of Bitcoin ETFs in January 2024 and the upcoming U.S. presidential election. Despite Bitcoin’s price rising from $94K to $106K in the last two weeks, the Coinbase Premium has declined. If this price surge has not been supported by U.S.-based demand, it could indicate underlying weakness in medium-term upward momentum. Investors should remain cautious and monitor this development closely.
Written by Yonsei_dent
