As a seasoned crypto investor with several years of experience in the market, I’ve seen my fair share of market volatility and price swings. The recent narrowing of the Coinbase Premium Gap is a welcome sign for me, indicating that selling pressure has eased on the exchange. This could potentially create some short-term upside opportunity, as Maartunn, a well-respected analyst in the crypto community, suggests.
The demand to buy Bitcoin on the widely used crypto exchange, Coinbase, has lessened recently. This is indicated by a noticeable decrease in the Coinbase premium – the gap between the Bitcoin price on Coinbase and that of other exchanges.
According to data from CryptoQuant, the difference between the bid and ask prices for cryptocurrencies on the Coinbase exchange, often referred to as the “Coinbase Premium Gap,” has noticeably shrunk following a recent dip into highly unfavorable levels. This narrowing gap may indicate substantial selling pressure from institutional investors who frequently utilize Coinbase to enter the cryptocurrency market.
As an analyst, I’ve observed a significant reduction in the price difference between the bid and ask prices for Bitcoin recently. This trend suggests that selling pressure has diminished noticeably. Several factors could be contributing to this easing of selling pressure. Firstly, the flows into spot Bitcoin exchange-traded funds (ETFs) have been more stable as of late, reducing the supply of Bitcoin on the market. Secondly, the price of Bitcoin itself has started to surge, potentially attracting new buyers and further dampening the selling pressure.
The premium on $BTC due to heavy selling on Coinbase seems to have lessened recently. This situation might present a brief window for price increases.— Maartunn (@JA_Maartun) May 15, 2024
As a crypto investor closely following the analysis of renowned expert Maartunn, I’ve noticed an intriguing observation he recently shared on microblogging platform X – formerly known as Twitter. The chart in question depicts the Coinbase Premium Gap, and based on his assessment, a significant drop in this gap could potentially generate some short-term profits for investors.
The analyst pointed out that Bitcoin’s open interest, representing the quantity of active derivatives contracts, experienced a notable surge of around 9% within a short timeframe. This sudden growth, according to the analyst, raises concerns.
The price of Bitcoin, the leading cryptocurrency, broke free from its one-month long holding pattern and soared past $65,000, reaching over $66,000 following a robust 8% increase within the previous 24 hours.
As a crypto investor, I’ve observed an intriguing trend: my cryptocurrency holdings have seen a notable surge following the release of US inflation data for April. Contrary to expectations, consumer prices only rose by 3.4% year-on-year during this month – a decrease from the 3.5% increase recorded in March. This unexpectedly lower figure has fueled optimism within the crypto community, potentially leading to increased buying and subsequent price growth.
JUST IN: 🇺🇸 Inflation in the US dropped to 3.4% from 3.5% in March
— CryptoGlobe (@CryptoGlobeInfo) May 15, 2024
In the first quarter of the year, filings with the U.S. Securities and Exchange Commission disclosed that some hedge funds and financial giants increased their holdings of Bitcoin through spot Bitcoin exchange-traded funds. Bracebridge Capital, a Boston-based hedge fund overseeing around $12 billion in assets, was among the buyers, purchasing a total of $360 million across three different funds.
As a researcher, I’ve come across new information that Wisconsin is the latest local government entity to disclose a Bitcoin investment. They purchased approximately 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) in the first quarter of this year, representing nearly $100 million worth of Bitcoin holdings.
As an analyst, I’ve noticed an intriguing development: Wisconsin has recently disclosed its investment in Bitcoin through exchange-traded funds (ETFs) focused on the cryptocurrency’s spot market. This move puts the state in the same league as heavyweights like JPMorgan Chase and Wells Fargo, based on their latest 13F filings.
JPMorgan disclosed investments totaling $731,246 in four different Bitcoin investment products: BlackRock’s iShares BitCoin ETF, Bitwise Asset Management’s BITWBitcoin Fund, Fidelity Wise 5% Crypto Index Fund, and Grayscale Bitcoin Trust. Meanwhile, Wells Fargo reported holding $141,817 worth of shares in the Grayscale Bitcoin Trust. Similarly, BNP Paribas and BNY Mellon have made comparable disclosures.
BNP Paribas, Europe‘s second-largest bank with over $600 billion in assets managed by its arm for asset management, acquired shares of IBIT during the initial quarter of the year. This move granted them exposure to Bitcoin, the leading cryptocurrency.
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2024-05-16 18:01