Bitcoin (BTC) Coinbase premium turns positive for first time since mid-January

JH Kim

Summary

After Bitcoin (BTC) regained $60,000, buying by US investors was spotted, and the Coinbase premium turned positive for the first time since mid-January.
A positive turn in the Coinbase premium is interpreted as a signal that buying demand from US institutions and retail investors is relatively strong.
Although the previously negative Coinbase premium has turned positive during the correction phase since the start of the year, the analysis said it is necessary to confirm further price action and whether capital inflows follow to determine if this leads to a sustained shift toward buying.

After Bitcoin (BTC) regained $60,000, buying by US investors was spotted, pushing the Coinbase premium into positive territory for the first time since mid-January this year.

Julio Moreno, chief analyst at CryptoQuant, wrote on X (formerly Twitter) on the 6th (local time) that “as Bitcoin broke above $60,000, US investors are stepping in to buy,” adding that “the Coinbase premium recorded a plus (+) reading for the first time since mid-January.”

The Coinbase premium is an indicator that reflects the price gap of Bitcoin between the US crypto exchange Coinbase and the global exchange Binance. Generally, when the premium turns positive, it is interpreted as a signal that buying demand from US institutions and retail investors is relatively strong.

Since the start of the year, during Bitcoin’s correction phase, the Coinbase premium had remained in negative territory, showing subdued buying by US investors. This shift into positive territory is seen as an indicator pointing to a potential change in market participants.

Still, some analyses note that it remains to be seen whether the short-term rebound in the Coinbase premium will translate into a sustained shift toward buying, as this will depend on further price action and whether additional capital inflows materialize.

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