Bitcoin trading lower on Coinbase vs. Binance indicates strong buying pressure internationally.
MicroStrategy's new 7,420 BTC purchase at $61,750 each boosts its total holdings to 252,220 BTC.
Bitcoin Fear and Greed Index hits neutral at 54, reflecting a shift toward bullish investor sentiment.
The upward trajectory taken by Bitcoin has affected trading behavior and investor perception. Major exchanges like Coinbase and Binance and market participants such as MicroStrategy are under immense buying pressure and investment strategies.
https://twitter.com/cryptoquant_com/status/1837079088189657492
One of the important on-chain metrics, the Coinbase Premium Index—which essentially measures the price difference between Bitcoin on Coinbase and Binance—currently shows a negative value. This means that the trading price of Bitcoin is lower on Coinbase compared to Binance, as has been indicated throughout, suggesting stronger buying activity on the latter. A negative premium reflects lesser demand in the U.S. markets than the international ones. The market structure, with a stably priced Bitcoin against the negative premium, suggests an uncanny pattern of strong buying pressure on Binance.
The strong activity on Binance could hint toward the more general interest in Bitcoin outside the U.S., perhaps setting a base for further gains. According to market analysts, what is also necessary for Bitcoin's continued price appreciation is for this buying pressure to take shape on the global board owing to FOMO among overseas investors.
MicroStrategy's Bitcoin Purchases and Wallet Movements
Further complicating these market dynamics, MicroStrategy purchased more Bitcoin today. The purchases added 7,420 BTC at an average price of $61,750 per Bitcoin, bringing the total to 252,220 BTC. These purchases indicate the bullish outlook in the institutional investors' camp but have stabilizing and probably uptrending effects on market prices due to large capital injections.
Also, somewhat connected, some movement has been seen in Bitcoin miner wallets that had lain dormant for more than 15.5 years. The movement in these wallets includes the transfer of 250 BTC, possibly a sign of some early Bitcoin movers profiting. These moves are vital, given that they can sometimes give insight into the sentiments of the long-term holders and their impact on market liquidity and price volatility.
Market Sentiment Neutralizes as Shorts Drop
Market sentiment was cautiously optimistic, according to several indicators. The Bitcoin Fear and Greed Index surged to 54 out of 100—neutral—its highest level over three weeks, reflecting a shift in investor sentiment toward more neutral or bullish perspectives.
Another reason for optimism is the contraction in short net positions in CME futures. If data is anything to go by, net short positions on CME futures have contracted 75% in the last five months. This insinuates that institutional players have stopped being bearish on Bitcoin, leaving downward pressure on its price.
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