Binance Buyers Fuel Bitcoin Demand as Coinbase Premium Turns Negative
Binance Takes the Lead as Bitcoin Buying Power Shifts
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A recent analysis by CryptoQuant analyst, known as ‘Avocado Onchain,’ has revealed a significant change in the Bitcoin market. The Coinbase Premium, which tracks the price difference between Bitcoin on Coinbase and Binance, has dipped below zero. This signals that Bitcoin is trading at a lower price on Coinbase compared to Binance, suggesting a divergence in buying activity across different markets.
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Despite the negative Coinbase Premium, Bitcoin’s price has been on an upward trajectory. This suggests that while US-based traders on Coinbase might not be the primary force driving the price up, Binance, a prominent exchange serving global users, is experiencing substantial buying pressure.
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International Demand Drives Bitcoin’s Rise
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Avocado highlights that the negative Coinbase Premium indicates a surge in buying activity from outside the US, particularly on Binance, where the price is slightly higher. This suggests a stronger demand for Bitcoin in international markets.
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“During the current upward trend, the fact that the Coinbase Premium is negative while #Bitcoin’s price isn’t falling suggests that there is strong buying pressure occurring on Binance.” – By @avocado_onchain…
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Avocado notes that for Bitcoin to experience a significant price increase, this buying pressure needs to continue its global expansion, fueled by FOMO across multiple regions.
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This shift in buying pressure towards Binance is seen as a positive sign for Bitcoin’s price trajectory. The asset has experienced a notable increase in the past day, reaching above $64,000 in the early hours of Friday. While Bitcoin has pulled back slightly from this 24-hour high, trading at $62,831 at the time of writing, it remains up by 0.7% in the past day.
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Bitcoin’s Bullish Outlook
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The surge in Bitcoin’s price to over $64,000 also resulted in a temporary spike in its market cap valuation, reaching $1.260 trillion before settling at $1.242 trillion at the time of writing. Analysts are optimistic about Bitcoin’s bullish trajectory, with some pointing to the historical pattern of bull markets starting 170 days after a halving event. As the market currently stands 153 days after the halving, some speculate that history might repeat itself, driving Bitcoin to new heights.
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The analysis suggests that Bitcoin’s current price surge is being driven by a growing global demand, particularly on Binance. This shift in buying pressure signals a positive outlook for Bitcoin’s price trajectory. It remains to be seen if this trend will continue and drive Bitcoin to new highs.