Bitcoin, the dominant digital asset, is experiencing a resurgence in popularity as indicated by the positive turn of the Coinbase Premium Index. Despite a recent setback that caused Bitcoin to drop below $50k, the increase in the Coinbase premium index is revitalizing demand for Bitcoin in the US market. According to CryptoQuant, buying pressure is on the rise in the US market.
The recent crash in the USD stock market had a ripple effect on the crypto market, resulting in a significant downturn. Bitcoin was not immune to this as it plummeted below the $50k mark. However, the tide is turning as the Coinbase premium index has now turned positive, leading to an upward trajectory in Bitcoin’s price and an increased demand in the US market.
The positive shift in the Coinbase Premium Index is a clear indication of the strong buying pressure from US investors who prefer Coinbase over Binance. The preference for Coinbase among US-based crypto traders explained the downturn in the crypto market when the USD market crashed. However, with the resurgence of the Coinbase Premium index, it is evident that US-based crypto investors are driving the demand for Bitcoin, resulting in its price surging upwards. The high premiums observed also suggest that buying pressure is particularly robust in the US market.
The Coinbase Premium Index serves as a crucial indicator of the Bitcoin market’s direction and influence. According to analysts at CryptoQuant, this index represents the percentage difference between the price value of the USD pair on Coinbase Pro and the USDT pair on Binance. Given that the USD market has a significant impact on the crypto market, it is not surprising that most US-based investors choose Coinbase as their preferred platform. Consequently, as the USD market rebounds, the crypto market follows suit, propelling Bitcoin into a bull market once again. This resurgence in demand for Bitcoin in the US market is reflected in its upward movement into the green zone.