BTC hovers at high levels, premium index exits
Currently, the flagship cryptocurrency Bitcoin (BTC) is hovering around $99,000 like a bird in the sky. However, the once highly regarded Coinbase premium index, which is a key indicator measuring the price difference of BTC between Coinbase and other exchanges, has quietly 'disappeared' from public view.
Interpretation: ETFs face challenges
This index disappeared after Bitcoin soared to $98,000. This change means that spot exchange-traded funds (ETFs) will be forced to 'gear up' to maintain Bitcoin prices in the high range, otherwise the price trend of Bitcoin may change.
Premium index connotation: price gap and pressure barometer
The Coinbase premium index is like an accurate thermometer for the cryptocurrency market. It is specifically used to show the subtle price gap between Coinbase's BTC/USD trading pair and Binance's BTC/USDT pair. When the premium shows a positive value, it is like the market sounding the charge, indicating that the purchasing enthusiasm at the exchange is burning fiercely, and buying pressure continues to rise. Conversely, if the premium significantly depreciates, it resembles a market retreat signal, indicating that the purchasing power of American investors is weak, and this trend has frequently appeared during past Bitcoin price bottoms.
Former key indicator: bottom prediction shows its magic
Looking back to July, this index was a mysterious compass exploring the bottom of the cryptocurrency market. After the premium discount fell into a negative value quagmire, David Lawant, the research director of cryptocurrency brokerage FalconX, seemed to have a prophetic ability, accurately predicting that BTC would achieve 'brilliant and dazzling' returns in the next six to twelve months. Sure enough, since then, cryptocurrency prices have skyrocketed from just below $60,000 to now hover around $99,000, and it has been infinitely close to the psychologically significant strong resistance level of $100,000.
The information provided in this article is for reference only and does not constitute any type of advice.
