After Trump's election win on November 5, Bitcoin's price surged past $100,000, supported by a rising Coinbase Premium Index, which measures The pertcent difference between Coinbase Pro price (USD pair) and Binance price(USDT pair). This increase indicated strong demand from U.S. investors.
However, since December 7, the Coinbase Premium Index has been on a decline, coinciding with a drop in Bitcoin’s price to below $94,000. This shift is likely influenced by a combination of factors, including the seasonal effects of the Christmas holidays, where trading activity tends to slow down, and liquidity challenges in the market. Reduced market participation during the holiday season, alongside limited cash flow, has likely contributed to the price decline.
Written by Grizzly
