Bitcoin Coinbase Premium Returns To Neutral: Buying Push Already Over?

The recent Bitcoin rally above $70,000, driven by the positive Bitcoin Coinbase Premium, seems to have slowed down as the premium returns to neutral levels. The Coinbase Premium Gap, a metric that tracks the difference between Bitcoin prices on Coinbase and Binance, has declined back towards the neutral line. When the metric is positive, it indicates higher buying pressure on Coinbase, while a negative value suggests higher selling pressure on Coinbase. The chart depicting the trend in the Coinbase Premium Gap shows a decline after reaching notably positive values during the recent upward push in Bitcoin’s price. This suggests that the buying pressure on Coinbase contributed to the surge, and the slowdown in the rally after the metric returned to neutral levels further supports this. The close relationship between the Bitcoin price and the Coinbase Premium Gap this year adds significance to this development. Coinbase is favored by American institutional investors, while Binance attracts more global users, so the premium provides insight into the behavior of different holders. With the indicator nearing the neutral mark, it implies that institutional entities may have reduced their buying activity. It would be worth monitoring how this situation unfolds in the coming days, as a decline in the premium could result in a decrease in BTC price, while continued positive values would be bullish. Currently, Bitcoin is trading around $70,100, with an increase of over 11% in the past week.