Coinbase Data Shows Institutional Investors Buying Bitcoin

Coinbase premium gap, indicating the price difference between Coinbase Pro (USD pair) and Binance (USDT pair), suggests renewed institutional buying of Bitcoin.

Although the holiday weekend is over, the price of Bitcoin has managed to maintain its position above $70,000. Amid several economic events, including the release of the US PCE inflation rate, which came in slightly hot, the cryptocurrency market exhibited a relatively low activity level.

Over the past 24 hours, the entire volume of the cryptocurrency market has decreased by more than 15%. On the other hand, the premium differential on Coinbase suggests that institutional investors are once again purchasing.

Coinbase Premium Gap Indicates Bitcoin Buying

The decline in institutional buying began on March 27, and the premium gap on Coinbase turned green once more at the end of March 29, following the Federal Reserve’s preference for the PCE inflation index.

According to the on-chain expert Maartunn, the premium gap across Coinbase has been more significant than fifty since the morning of March 30. According to him, it appears that U.S. institutions have resumed their purchases of Bitcoin.

Educational institutions in the United States frequently use this highly accurate indicator to determine when they will start purchasing Bitcoin. This implies that a significant inflow into spot Bitcoin ETFs is likely to occur in the week preceding the anticipated Bitcoin halving in mid-April.

What is known as the Coinbase premium gap is the difference between the price of Coinbase Pro (USD pair) and the price of Binance (USDT pair). High premium values often indicate heavy purchasing demand from investors in the United States on the cryptocurrency exchange Coinbase.

Traders can confirm the market’s direction by closely monitoring the measure and trading volumes.The gap between hedge funds (shown in purple) and asset managers (shown in red) continues to expand, according to analysts working for Ryze Labs.

At the same time that asset managers are continuing to buy Bitcoin futures, hedge funds are boosting their short-selling activity. This discrepancy shows that this happens.

In light of the present bullish environment, this dynamic lends credence to the possibility of a short squeeze, which has the potential to drive Bitcoin’s subsequent higher trajectory, as they stated.

Michael van de Poppe, a well-known expert, stated that the sideways movement of Bitcoin generated a consolidation near $70,000. Nevertheless, he guarantees that Bitcoin still follows the typical cyclical pattern that occurs every four years.

He said, “To tell you the truth, this cycle will probably surprise many people.” Within five years, $70,000 per bitcoin will be considered affordable.

During this time, futures and options trading has remained relatively quiet because traders are waiting for the price of bitcoin to sink even further. The open interest in CME Bitcoin futures dropped by 0.32%, reaching $11.64 billion.

The total open interest in Bitcoin options fell from $32.31 billion to $21.52 billion on the market. Bitcoin’s price is currently trading at $70,189, indicating that it is going horizontally.

The lowest price in the past twenty-four hours is $69,076, and the highest is $70,513. Also, the amount of trading has decreased by more than 25 percent.