Bitcoin Buying Over? Coinbase Premium Red After $98,000 High

Data shows the Bitcoin Coinbase Premium Gap has plunged into the negative territory following BTC’s latest high above $98,000.

Bitcoin Coinbase Premium Gap Has Just Observed A Plummet

As explained by CryptoQuant community analyst Maartunn in a new Quicktake post, the recent positive Coinbase Premium Gap has just disappeared. The “Coinbase Premium Gap” here refers to an indicator that measures the difference between the Bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair).

When the value of this metric is positive, the BTC price on Coinbase is greater than on Binance right now. Such a trend implies that the former is observing a higher buying or lower selling pressure than the latter.

On the other hand, the indicator being under zero suggests Binance may be the platform observing the higher buying pressure as BTC is trading at a higher rate than Coinbase.

Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the last couple of days:

The value of the metric appears to have turned red | Source: CryptoQuant

As displayed in the above graph, the Bitcoin Coinbase Premium Gap was positive during the last two days, implying notable buying pressure on the platform.

Alongside this buying, BTC set a new all-time high (ATH) above $98,000. Since the record, though, the indicator’s value has declined, and a slight dip into the negative zone has been observed.

For much of 2024, the Coinbase Premium Gap has been a driver for bullish BTC price action, with negative values often not a good sign for the asset.

Coinbase is the main platform for American investors, especially large institutional entities, while Binance has users worldwide. As such, the Coinbase Premium Gap tells us how US-based whales differ in behavior from offshore ones.

Given the tight relationship that the metric has held with BTC this year, American institutional investors seem to be running the show. With the indicator declining to neutral-negative levels, these entities may be done with buying for now. If so, Bitcoin could see a pause in its rally.

The metric is still to keep an eye on in the coming days, though, as things can change quickly, with a reversal to positive levels potentially signaling the green light for the run.

In some other news article, a whale has just moved 500 BTC between 7 and 10 years old, as Maartunn pointed out in an X post.

The data for the transactions of tokens aged between 7 and 10 years old | Source: @JA_Maartun on X

Generally, transfers of old coins are a sign that the market veterans are looking to sell. Thus, this transaction, which has seen the movement of a stack worth over $49 million, could very well be a whale looking to harvest their massive profits.