After weeks of treading in the red, the market briefly climbed to the $1 trillion mark. The world’s largest cryptocurrency – Bitcoin – as well as some major altcoins, raked in notable gains. Additionally, Coinbase’s Bitcoin price premium also seems to be recovering after surging near 0.075.
Possible Whale Accumulation
According to the data from blockchain analytics company CryptoQuant, the Coinbase Premium Index stepped into positive territory for the second time since April 2022. The index first spiked on June 30 all the way to 0.217, shortly after which it slipped back to the red zone.
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Over the past week, the Bitcoin Coinbase premium gap also appeared to be improving. This suggested that the selling pressure may be drying up.
Coinbase Premium – which compares Bitcoin’s price on Binance and Coinbase Pro (Coinbase’s professional trading platform) against Tether and USD – is a metric used to gauge institutional whale movement.
The positive premium essentially indicates that whales are strengthening their accumulation and continuously buying at a higher level. Furthermore, this trend also evidences expanding interest and activeness of investors in Coinbase.
While the latest uptick does mean indicate a bull run, it does show that there are institutional buyers in the price range.
Breaking the Red Streak
In May, the BTC premium on the largest US-headquartered cryptocurrency exchange tanked to the lowest (negative) levels since 2019 amid intense market correction. Bitcoin saw the most violent quarter of the decade dumping below $20,000 twice in June alone.
The death spiral of Terra ecosystem tokens coupled with grave macroeconomic conditions was just the precursor. What followed was a swath of staff layoffs from well-known crypto companies as well as bankruptcy and liquidation cases from digital asset lenders.
Despite the volatility, the crypto market is recovering again. Galaxy Digital CEO Mike Novogratz recently said that most of the deleveraging are “already out of the system,” and a potential case of more downside price action does not appear in the cards. However, in a case where Bitcoin does go down, the investor asserted that the “market might go sideways as it waits for a clear signal for reversal.”
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