For the first time this year and since at least December 16, the Coinbase Premium Index for Bitcoin (BTC) is showing optimistic signs. Earlier, this index plummeted as investors became cautious about Bitcoin’s price, which had entered a stable phase on December 19. The ongoing shift in the Coinbase Premium has significantly influenced market sentiment, with Bitcoin emerging as the primary beneficiary of this change.
Coinbase Premium and Bitcoin Adoption
The United States continues to be the biggest platform for institutions adopting Bitcoin. The Coinbase Premium BTC Index measures the gap between Bitcoin’s price on American exchanges and Binance. If this index is positive, it means there’s increased demand from the U.S market. Conversely, a negative index suggests decreased demand.
Based on information from CryptoQuant’s analysis, it appears that purchasing demand is stronger than selling pressure in the U.S. market for cryptocurrency. Furthermore, Bitcoin’s 14-day Simple Moving Average has turned positive three days ago, marking the first such occurrence in over three years.
Over the past three days, the Bitcoin price has risen by 4%, approaching the $100,000 mark. This increase corresponds with previous market patterns. As per CryptoQuant’s analysis, when the Coinbase Premium last became positive in November 2024, the price surged from $69,000 to $108,000.
Three days ago, I observed that the Coinbase Premium Index surpassed its Simple Moving Average (SMA) 14 for the first time in 26 days. This intriguing development has propelled Bitcoin’s price by approximately 4%, pushing it to a new level of $102,000.
In Nov 2024, a similar move saw Bitcoin rally from $69K to $108K.
U.S. buyers could be back in action.
— CryptoQuant.com (@cryptoquant_com) January 6, 2025
According to CryptoQuant analysts, there’s a possibility that the price could reach and surpass its record high of $108,000 if American investors significantly re-enter the market.
Cucial Growth Factors Align
In response to the upcoming inauguration of Donald Trump, who’s known as the “Bitcoin President,” the digital currency market in the U.S. is showing signs of activity. Currently, one Bitcoin is being traded for approximately $102,217.34, marking a 3.78% increase over the past day. The coin’s price has risen from a recent low of $97,926.14 to a multi-week high of $102,482.87.
If the coin continues its strong performance as predicted, it could potentially reach its highest point ever, according to forecasts made by Robert Kiyosaki and other well-respected financial analysts.
The positive shift towards cryptocurrency regulations, along with MicroStrategy’s increasing investments and the approval of a spot Bitcoin ETF could pave the way for Bitcoin’s continued upward trajectory.
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2025-01-06 23:48