Coinbase premium index, an important indicator used to closely monitor Bitcoin purchases of US-based investors in the crypto market, has exhibited remarkable activity recently. This indicator, which stands out especially for understanding the perspective of institutional investors on crypto, started to produce positive signals one after another in April.
Coinbase premium index expresses the difference between the Bitcoin price on Coinbase, which is traded on Nasdaq, one of the largest stock exchanges in the USA, and Binance, which has a large volume worldwide. US institutions; Large investors such as mutual funds, corporate treasury units and exchange traded funds generally make their purchases through Coinbase. If Bitcoin is trading at a higher price on Coinbase compared to Binance, it shows that US investors are active in the market. During periods of market uptrend, this difference usually increases noticeably.
According to Coinglass’s data, this index remained positive for 14 consecutive days, from April 9 to April 22. This is the longest uninterrupted positive streak since Bitcoin’s record highs in October.
Interest from US investors is increasing
The fact that the Coinbase premium index is constantly positive reveals that US-based investors’ purchasing appetite for Bitcoin has been quite high recently. Similar situations in the past have heralded upward movements in Bitcoin price. Despite the fluctuations in Bitcoin, especially in recent months, the stability of the attitude of US investors is remarkable.
It stands out as a long-accepted finding in the market that periods when large US-based investors make intense purchases generally accompany bull markets.
By comparison, this index generally turned negative from mid-December to the end of February. At that time, the Bitcoin price had eased from approximately $100,000 to $60,000, and a decline in US-based demand was observed.
The recovery in prices is getting stronger
It is important that this long period, in which the premium index has been positive recently, coincides with a period in which investors maintain their demand despite geopolitical developments and crises in decentralized financial markets. The fact that the index is positive, especially when there are active crises and market uncertainty, shows that investors’ trust in Bitcoin is not easily shaken.
With the impact of all these developments, Bitcoin price reached $ 78,000 last Wednesday. With this increase, the value of Bitcoin increased by 14 percent in April.
