According to one CryptoQuant analyst, a negative Bitcoin Coinbase Premium suggests lower demand from US investors.
Posted July 26, 2024 at 6:39 am EST.
A key metric that signals US investor interest had flipped negative on Wednesday, according to data from Coinglass.
The Coinbase Premium Index, which measures the percentage difference between BTC/USD on Coinbase Pro and BTC/USDT on Binance had turned red. At the time of writing, that figure stood at -0.0143%.
“High premium values could indicate US investors’ strong buying pressure in Coinbase,” said CryptoQuant analyst ‘IT Tech.’
“Bitcoin Coinbase Premium Index has turned negative, indicating decreasing demand from US investors.”
That data seems to conflict with inflows into spot bitcoin exchange-traded funds (ETFs), which recorded another day of positive momentum. Total inflows into spot bitcoin ETFs came in at $31.1 million, as per data from Farside Investors, with BlackRock’s IBIT recoring $70.7 million worth of inflows, and Grayscale’s GBTC recording $39.6 million in outflows.
Risk-off sentiment on Wednesday saw both the S&P 500 and Nasdaq post their worst days since 2022. That negative sentiment found its way into the crypto space after the end of the trading day, with around $290 million liquidated from crypto traders on the wrong side of their trades.
While the big-tech selloff continued in Thursday’s session, the crypto market appeared to decouple from Wall Street. At the time of writing, the global crypto market capitalization was up 3.5% to $2.9 trillion, recouping most of the losses from the day prior.
The price of bitcoin was trading at around $67,290, up 4.62% over the last 24 hours. Ether was also tracking slightly higher, trading at $3,250 after gaining 2.5% over the same period.
Some market participants attributed the higher bitcoin price the Bitcoin 2024 conference which kicked off in Nashville.
A number of influential personalities, with pro-crypto ideologies, took the stage to share their views on the digital asset space. Included in the conference’s list of speakers is presidential candidate Donald Trump, who is expected to address attendees on Saturday.
The conference has already a fair share of high-profile executives share their views on Bitcoin. On Thursday, BlackRock’s head of digital assets Robert Mitchnick spoke to Bloomberg Research Analyst James Seyffart to share insights into the asset manager’s multi-year crypto strategy.
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