Bitcoin Rally Stalling? Coinbase Premium Disappears as BTC Nears $100,000 Resistance

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As a seasoned researcher with years of experience in the crypto market, I find myself intrigued by the latest developments surrounding Bitcoin. The disappearance of the Coinbase Premium Index at the $98,000 mark is an interesting turn of events. This phenomenon, as noted by maartunn, could potentially signal a shift in the dynamics of the market, especially given the role of spot exchange-traded funds (ETFs) in maintaining price elevation.

Currently, the value of Bitcoin (BTC) is approximately $99,000. Notably, the Coinbase Premium Index, which compares the price of BTC on Coinbase with that on other platforms, shows no difference or gap at present.

As per a post by CryptoQuant analyst “maartunn,” the index vanished immediately when Bitcoin reached $98,000, implying that spot Exchange-Traded Funds (ETFs) need to increase their activity to maintain the high pricing level.

The Coinbase Premium Index represents the difference in price between trades of Bitcoin (BTC) against the U.S. dollar (BTC/USD) on Coinbase and against Tether (BTC/USDT) on Binance. A positive premium indicates that demand for Bitcoin on Coinbase is growing, suggesting increased buying activity on the platform.

A significantly reduced cost for Bitcoin indicates decreased demand among US investors, a pattern that has often preceded previous low points in Bitcoin’s price.

In July, the index served as a crucial signpost for identifying the lowest point in the cryptocurrency market. Specifically, once the premium discount turned negative, David Lawant, the head of research at FalconX, correctly predicted that Bitcoin would experience substantial growth over the subsequent six to twelve months, which he described as “splendid.

After that point, the value of the cryptocurrency skyrocketed, rising from approximately $60,000 to currently trading at around $99,000, close to the significant barrier of $100,000.

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2024-11-23 04:52