Bitcoin Coinbase Premium Index Has Turned Deep Red Recently
As pointed out by an analyst in a CryptoQuant , whales on Coinbase Pro seem to have been behind the latest dump.The “Coinbase Premium Index” is an indicator that measures the percentage difference between the Bitcoin price listed on Coinbase Pro (USD Pair) and the one listed on Binance (USDT pair).
The value of the metric seems to have been red in recent days | Source:
As you can see in the above graph, the Bitcoin Coinbase Premium Index has plunged into negative values recently along with the crash.
This means that US investors have been dumping more aggressively than investors from the rest of the world in the past week. Also, as is clearly visible in the chart, a similar trend was also seen back in early May, when BTC’s price crashed from $40k to $30k. The quant notes that while Coinbase observed this selling, the Bitcoin Korea Premium Index showed an interesting behavior. The below chart highlights this trend.Looks like this metric had a green value recently | Source:The Korea Premium Index measures the gap between the prices listed on South Korean crypto exchanges, and that on other exchanges. From the graph, it’s apparent that during both the current crash as well as the one in May, the indicator showed positive spikes. This implies that while the US investors were dumping, the Korean investors were focusing on “buying the dip.”
BTC Price
At the time of writing, Bitcoin’s price floats around $16.8k, down 15% in the last week. Over the past month, the crypto has shed 11% in value.
BTC has been stuck in consolidation under $17k in the last few days | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com