The Bitcoin Coinbase Premium Gap has been positive for a while now, a potential indication of buying interest from US-based investors.
The metric basically tells us about how the buying or selling behaviors differ between the userbases of the two platforms. The former is the main destination of the US-based investors, especially the large institutional entities, while the latter has a more global traffic.
When the indicator’s value is positive, it means the American whales are applying a higher buying pressure (or lower selling pressure) than the Binance users. On the other hand, it being negative suggests a net higher selling pressure on Coinbase has pushed BTC to a lower rate on there.
Now, here is a chart that shows the trend in the 30-hour moving average (MA) of the Bitcoin Coinbase Premium Gap over the past year and a half:
As displayed in the above graph, the 30-hour MA Bitcoin Coinbase Premium Gap has been above the zero mark for a while now, suggesting buying pressure has consistently been higher on Coinbase than Binance.
In the period between then and now, Bitcoin has often shown correlation with the Coinbase Premium Gap, potentially implying that US-based institutional investors have had a significant presence in the sector.
Considering this trend, the recent green streak in the metric can naturally be a positive sign for the asset. That said, things can quickly change in the cryptocurrency market sometimes, so the indicator could be to keep an eye on to watch out for any reversals into the negative zone.
At the time of writing, Bitcoin is trading around $107,800, up over 2% in the last week.
