On January 9th at 16:00, the AICoin Research Institute conducted a graphic and text sharing on [Coinbase Premium Insights into US Market Funds]. Below is a summary of the live content.
Today, the research institute will analyze the US stock market indicators with everyone, starting with the most classic - the Coinbase market premium.
Let me show you the host's homework first.
Assignment one: Arbitrage.
In the last three days, the host's arbitrage has been slightly losing, but the host continues to hold long-term.
This is the result from the host's 30,000 USDT.
Why does the host always say it's a principal of 30,000 USDT?
Because the host will make arbitrage with a principal of 30,000 USDT every month, taking out part of the profits.
Generally, with a principal of 30,000 USDT, the minimum profit can range from 300 to 800 USDT in arbitrage earnings per month, so every month, the host not only helps everyone explore whether arbitrage can be played but can also earn a little bit of pocket money through AICoin's arbitrage tools, achieving financial freedom.
This is the host's first assignment. In recent days, it has been as tough as everyone else, but currently, the funding rate has turned positive, continuing to be suitable for arbitrage and can be profitable.
If you want to get started with arbitrage, you can learn here, as there is a large group of arbitrage professionals.
In fact, arbitrage players spend a lot of time because after opening a position, they just chat and wait for the money to come.
Therefore, if everyone wants to learn about arbitrage, you might as well join the AICoin arbitrage club and professional arbitrage players to arbitrage together and remind each other of opportunities. We at AICoin also provide a wealth of tutorials.
Assignment two: AI grid.
The second assignment!! Still the host leading the way: AI grid, because what the host is doing is increasing the grid, this time the host's 700 USDT also trembled a bit, with returns dropping from a peak of 14% to 3%.
However, at this time, let's first look at the k-line, which has returned to the bottom of the range, and the host temporarily does not plan to move the grid.
If the k-line breaks below this 90,000 range, the host will create a new grid, accompanying everyone to make money using the grid. If it really drops, the host will also run a new range and will announce it to everyone later. The host hopes to help everyone discover trading tools with the test results.
A friend in the comments asked if there would be rebates for high-frequency grid trading.
In fact, many people run high-frequency grids, partly to make quick profits and partly to boost trading volume and improve their account level. Higher VIP levels lead to lower trading fees, and then exchanges have senior managers connecting with you. This is a process that professional traders can go through.
Grids can make big money! If everyone wants to learn about grids, they can open the AICoin client.
Currently, the grid host will continue to run, exploring for everyone and accumulating experience. If later everyone also gets the arbitrage tool and grid tool running, welcome to our live stream, and let's exchange more! For professional players, we invite you to share so that we can truly achieve common prosperity in the live stream room!
Homework submitted, the current summary of the assignments is:
1. The arbitrage opportunity has turned positive and can continue to operate arbitrage.
2. Grid trading should consider whether the current price has broken below 90,000 or has stabilized above 90,000 and is pulling up. If it breaks below 90,000, the grid planned by the host will likely be between 86,000 - 96,000. If it stabilizes, the host will continue to maintain the grid range of 96,000 - 106,000.
Knowledge sharing.
Next, the host will share how to gain insight into US market funds through the Coinbase premium.
First, has everyone used the Coinbase premium index?
Let's take a look together.
Search for Coinbase here.
Put it on the k-line.
This is a premium index.
How is the data for this indicator formed?
The Coinbase BTC premium refers to the price difference between Bitcoin on Coinbase and other exchanges (such as Binance, Kraken, etc.), reflecting the demand of US market investors.
When the price of Bitcoin on Coinbase is higher than that on other exchanges, it is called a positive premium; conversely, it is a negative premium.
In fact, it's just the price difference, which can be understood as: the premium situation of Coinbase and other exchanges.
So how should it be used more reasonably? There will be the following aspects.
1. Reflect the demand of the US market.
Coinbase is one of the largest cryptocurrency exchanges in the United States, and the price difference between its prices and those of other major global exchanges can reflect the demand situation in the US market.
When the price of BTC on Coinbase is higher than on other platforms (such as Binance), it usually means that US investors have a high demand for BTC and are willing to pay a higher price to purchase Bitcoin.
We all know that Wall Street controls the world's largest capital, so the Coinbase premium will be the most impactful indicator for the crypto market.
2. Institutional investor sentiment indicator.
The trading activities on the Coinbase platform are mainly driven by institutional investors, and the changes in its premium can reflect the strength of institutional buying or selling demand.
When the Coinbase premium is positive, it indicates that the buying demand from institutional investors is high, while a negative premium may indicate increased selling pressure from institutional investors. Then, users from other exchanges will follow suit.
3. Extending the next function of Coinbase: revealing capital flow.
When the premium rises, it indicates capital inflow into the US market, while when the premium falls or turns negative, it indicates capital outflow.
4. Similarly, the premium index can present arbitrage opportunities: traders can use the premium difference for cross-platform arbitrage. For example, when the premium is positive, they can buy Bitcoin at a lower-priced platform and then sell on Coinbase for profit. However, this is currently a relatively theoretical concept, with fewer opportunities manually, making it difficult for friends in our live stream. Programmatic arbitrage still has a little profit margin.
5. This index can also be used for market prediction.
When the Coinbase premium turns from negative to positive, it usually means that the main forces in the US market have started to buy in, and the rise of Bitcoin will be relatively more stable.
When the premium rises significantly, it indicates an increase in the buying strength (demand) of the main buyers, and there is a high probability of a noticeable one-sided upward trend. Conversely, when the Coinbase premium turns from positive to negative, it may indicate a weakening demand in the US market.
Let's take an example, looking at Bitcoin's performance in the first quarter of 2024:
When the premium is negative, the BTC price slowly rises, increasing by 18% over 17 days.
When the premium turns positive, the Bitcoin price maintains an upward trend, and the upward amplitude increases significantly, rising about 17.8% within 12 days.
When the premium is positive and significantly rises, BTC surges, increasing by 44.17% in 17 days!
The Coinbase premium index can be played like this!
It is recommended that everyone add it to their secondary indicator and use it.
Currently, PRO members use this index, which also supports alert functions.
The Coinbase index is shared here. You can look at this chart more to understand that this is a very practical indicator exclusive to PRO members.
A friend asked where to find the indicators; you can take a look at this chart.
That's all for the live broadcast content.
Thank you all for your attention, stay tuned to our live stream.
In a bull market, we explore the market together and find trading opportunities! Use AICoin well to earn a free life.
Recommended reading.
1. Excellent bottom-fishing secret.
2. Use AICoin correctly, opportunities are in hand.
3. Fibonacci measurement method.
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