Bitcoin price continues to remain above $70,000 despite the long holiday weekend. The crypto market saw mostly subdued activity due to some economic events, including the US PCE inflation release, which was a bit heated. The total crypto market volume has fallen by over 15% in the last 24 hours. However, the premium gap at Coinbase suggests that institutional investors are buying again.
Coinbase Premium Gap indicates Bitcoin purchase
Institutional buying began to subside on March 27th Coinbase reward gap It turned green again at the end of March 29 after the Fed favored the PCE inflation indicator. On-chain analyst Maartunn revealed that the reward gap on Coinbase has exceeded 50 since the morning of March 30th. He claims that US institutions may have started buying Bitcoin again.
The metric is often used to determine when U.S. institutions will begin purchasing Bitcoin because it is an extremely accurate indicator. This suggests that high inflows into spot Bitcoin ETFs are likely in the next week ahead of the Bitcoin halving, which is expected to take place in mid-April.
The Coinbase premium gap is the gap between the Coinbase Pro price (USD pair) and the Binance price (USDT pair). High premium values typically indicate strong buying pressure from US investors on the crypto exchange Coinbase. Traders can keep a close eye on metrics and trading volumes to confirm market direction.
Analysts remain bullish on BTC price
Analysts at Ryze Labs noted that the gap between hedge funds (in purple) and asset managers (in red) is widening. “This divergence suggests that asset managers continue to buy Bitcoin futures, but hedge funds are increasingly shorting. In the current bullish climate, this dynamic suggests a possible short squeeze that could drive Bitcoin’s next bullish move,” they said.
Popular analyst Michael van de Poppe said Bitcoin's sideways movement led to consolidation near $70,000. However, he assures that Bitcoin still follows the general 4-year cycle. He added: “Frankly, this cycle will probably surprise a lot of people. “In five years, $70,000 per Bitcoin is considered cheap.”
Meanwhile, futures and options buying remains subdued due to the holidays and the fact that traders are waiting for a further decline in BTC price. Open interest in CME BTC futures fell 0.32% to $11.64 billion. Total open interest in BTC options decreased from $32.31 billion to $21.52 billion.
BTC price is moving sideways with the price currently at $70,189. The 24-hour low and high are $69,076 and $70,513, respectively. Additionally, trading volume has dropped by over 25%.
Also read:
✓ Share:
Varinder has 10 years of experience in the Fintech sector, including over 5 years in blockchain, crypto and Web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of breakthrough technologies in over 5,000 news stories, articles and articles. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently reporting on the latest updates and developments in the crypto industry.
The content presented may contain the personal opinions of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers