Bitcoin, the leading digital asset, is back in demand once again as the Coinbase Premium Index turns positive. The recent shakeout dropped $BTC below $50k but as the Coinbase premium index increases, Bitcoin is getting back in demand in the US market. As per CryptoQuant, buying pressure is increasing in the US market.
#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
The USD stock market crash led to the crypto market downturn during the last couple of days. The crypto market faced a significant shakeout due to the USD market crash and Bitcoin dropped below $50K. Now, the Coinbase premium index has turned positive, and Bitcoin’s price is going up and getting in demand in the US market.
Coinbase Premium Turns Positive, Signaling Strong US Buying Pressure
US-based crypto traders prefer Coinbase over Binance. So, when the USD market crashed, the crypto market showed a significant downturn. But, now the Coinbase Premium index has turned positive again. This transition predicts a strong demand from the US-based crypto investors, that is driving the price of Bitcoin in an upward direction. Moreover, these high premiums indicate that buying pressure is high in the US market.
What is the Coinbase Premium Index and How Does it Influence the Bitcoin Market?
As per CryptoQuant analyst, Coinbase Premium Index is the difference of percentage between the price value of the USD pair (Coinbase Pro Price) and the USDT pair (Binance price). As the crypto market is highly influenced by the USD market, most of the US-based investors use Coinbase. So as the USD market recovers, the crypto market soars again and Bitcoin is again in the bull market, Bitcoin is getting demand in the US market and moving upward in the green zone.
