Feb 15, 2021 18:46 UTC
Feb 15, 2021 at 18:47 UTC
Coinbase Pro is the main bellwether for institutional demand. Currently, data from CryptoQuant specifies that the short-term selling burden on Coinbase is mounting. Bitcoin’s conclusive breakout above $50K might have to delay longer to materialize as advertisement buying pressure on Coinbase Pro displays signs of weakening — at most, in the short term.
The Coinbase Premium Index, which measures the gap between the Bitcoin price on Coinbase Pro & Binance, has tossed negative, rendering to CryptoQuant. In other terms, selling pressure on Coinbase seems to be consolidation associated with other exchanges such as Binance.
A bad reading on the Coinbase Premium Index might be a forerunner to short-term resistance. On the other hand, when the premium is high, it designates robust spot buying pressure on Coinbase.
Founded on the index, CryptoQuant CEO Ki-Young Ju trusts topping $50K ‘looks pretty tough’ in the close term.
‘Current buying power does not come from Coinbase,’ he added. ‘No more Coinbase premium likened to Binance/Huobi/OKEx. Be careful.’
Coinbase has developed a main bellwether for BTC demand due to its admiration among large, institutional buyers. These market members obtain their BTC through over-the-counter markets on Coinbase Pro. Though these large purchases do not directly influence the BTC price, they mean rising demand for the digital asset &, in turn, lessening supply. The Coinbase Premium Index, so, is one way to gauge institutional demand for Bitcoin in the short term.
A short-term variation in the Coinbase premium does not seem to have any bearing on Bitcoin’s long-term route. The digital asset leftovers in a strong uptrend, having sickly-looking well north of $49,700 on Sunday, rendering to Trading View data.
The Bitcoin price has increased a whopping 28% over the historical week, thanks in big part to Tesla’s planned gaining of the asset. Founded on the electric vehicle creator’s most new 10K filing with the U.S Securities & Exchange Commission, it tactics to assign roughly 7.7% of its gross cash rank to Bitcoin.
Publicly-traded companies & fund managers grasp roughly 6% of BTC’s circulating supply — a number that does not include Tesla’s $1.5 billion positions.