A key metric that indicates US investors' interest in bitcoin turned negative on Friday.
Experts, however, believe that this flip could positively affect BTC's price.
Coinbase Bitcoin Premium Records Negative Value
According to a report by a CryptoQuant analyst, the Coinbase Premium recently recorded a significant negative value. The Coinbase Premium Index is an indicator that measures the percentage difference between the price of bitcoin on Coinbase Pro and Binance.
Coinbase Pro is popular among crypto traders in the United States as well as several institutional investors while Binance, the largest crypto exchange by trading volume, caters to a more global audience. Thus, the index provides insight into the trading behaviors of users on both platforms.
Historically, positive Coinbase Premium values typically suggest strong buying pressure from U.S. investors. On the other hand, a negative shift in the index indicates a decline in demand for bitcoin from U.S. investors.
BTC Remains Stable as Buying Pressure on Binance Surges
Per the data, despite waning demand from US investors, bitcoin's price has remained stable, indicating “that there is strong buying pressure occurring on Binance.”
The CryptoQuant analyst pointed out that bitcoin's price could see a massive surge if demand for the digital assets increases across global markets. The present market movement hints that it might happen soon.
“For Bitcoin's price to see a significant increase, buying pressure needs to expand beyond the U.S., driven by FOMO (Fear of Missing Out) across global markets. This movement is quite positive,” the analyst said.
Bitcoin has continued to rally following the US Fed interest rate cut on Wednesday. The leading cryptocurrency briefly crossed $64,000 earlier today for the first time since last month.
The crypto asset has briefly retracted and is now trading at $62,800 at press time. If the upward trend continues, bitcoin could retest its all-time highs, and there are several bullish factors going its way. You can find more of this here.