"Coinbase Premium Drops... U.S. Investors Seem to Be Waiting for Lower Entry Prices"
Summary
- Although the "Coinbase Premium Index" remains positive, it was reported that U.S. investors' buying momentum has weakened.
- According to the analysis, U.S. investors currently view the Bitcoin price range as burdensome and are waiting for a lower entry price.
- It was explained that a sustained decline in the "Coinbase Premium" may indicate the possibility of a price correction.
Recently, there has been analysis indicating a marked slowdown in buying demand from U.S. investors.
In a Quicktake report on the 29th from digital asset (cryptocurrency) analytics platform CryptoQuant, analyst Arabchain explained, "Although the Coinbase Premium Index of Bitcoin is still holding in positive territory, the strong buying momentum that was seen below the $105,000 level has weakened," adding, "This indicates that U.S. investors perceive the current price range as burdensome and are waiting for lower entry points."
This indicator measures U.S. investor demand based on the price difference of Bitcoin between Coinbase and other exchanges. Generally, when the value is positive, it means strong buying demand in the U.S.; when it turns negative, it signals waning demand.
Analyst Arabchain further added, "If the Coinbase Premium indicator rises together with the price, it's a positive signal, but conversely, if the decline continues, it could suggest the possibility of a correction."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
