Bitcoin (BTC), the largest cryptocurrency, is attempting to test the crucial level of $60,000 after its painful dropdown a couple of days ago. Largely, this upsurge should be attributed to the increased activity of U.S. investors, Coinbase Premium dynamics demonstrate.
Bitcoin (BTC) investors in U.S. are buying, Coinbase Premium says
After spending two weeks in the red, Coinbase Premium, a crucial indicator of purchasing activity of U.S. Bitcoin (BTC) investors, is returning to the green zone. During the worst moments of the latest collapse, it dropped to -0.15%, as demonstrated by on-chain analyst @IT_Tech_PL from the CryptoQuant community.
#Bitcoin: demand back in the US market“Coinbase Premium Index turned positive again… High premium values could indicate US investors' strong buying pressure in Coinbase.” – By @IT_Tech_PL Read more 👇https://t.co/Ks4YOLNVqg pic.twitter.com/QDLlo9y2US
— CryptoQuant.com (@cryptoquant_com) August 8, 2024
Today, the indicator has already reached 0.1%. It means that the price of Bitcoin (BTC) in the USD pair on Coinbase Pro is 1% higher compared to BTC/USDT rates on major spot exchanges.
As such, the analyst highlights, this might indicate growing interest of U.S. investors in buying Bitcoin (BTC) at the current prices.
To provide context, when the Bitcoin (BTC) price hit its first local high over $70,000, Coinbase Premium jumped to 0.4%. In mid-January 2022, the indicator dropped to -0.4%, data says.
The upsurge of the Bitcoin (BTC) price resulted in $213 million in crypto liquidations; almost 50% of this sum were short positions.
For Bitcoin (BTC) itself, the market was even more merciless to bears: 61% of liquidated positions were shorts in XBT/USD pairs.
Worst is in for BTC?
As markets are recovering from the collapse, the optimism of traders gets stronger. As covered by U.Today previously, today, a seasoned on-chain analyst indicated 10 reasons to be bullish right now.
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In particular, he mentioned the role of the BTC narrative in the U.S. presidential race, the exhaustion of the largest and most aggressive sellers and the absence of dangerous CeFi services.
The same opinion was released by Raoul Pal last weekend. The Real Vision CEO stressed that he was not selling and only treated the drop of the BTC price between $50,000 as a "shakeout."
