Summary
- Ki Young Ju said market pessimism toward Bitcoin has reached an extreme and that this could instead be a bullish signal.
- He said the Coinbase premium index had fallen to its lowest level in four years, and that the last time it was this low was in November 2022, during the FTX collapse and Bitcoin's bottoming phase.
- A negative reading on the index means buying demand from US investors is weak, but he said current market sentiment is pessimistic enough to be interpreted as a bullish signal.
Forecast Trend Report by Period
Market pessimism toward Bitcoin has reached an extreme, with one analyst arguing that the bleak sentiment could itself be a bullish signal.
On October 30, CryptoQuant Chief Executive Officer Ki Young Ju wrote on X, formerly Twitter, that the Coinbase Premium Index had fallen to its lowest level in four years. The last time it was this low was in November 2022, when FTX collapsed and Bitcoin was forming a bottom.
The Coinbase Premium Index tracks the gap in Bitcoin prices between US-based exchange Coinbase and global exchanges. A negative reading means Bitcoin is trading relatively cheaper on Coinbase, which is typically interpreted as a sign of weak buying demand from US investors.
Ju added that market sentiment is pessimistic enough to be interpreted as a bullish signal.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.