MAC_D
Bitcoin Plummets, But Coinbase Premium Surges
The Coinbase Premium is a metric that represents the percentage difference between the price of Bitcoin on Coinbase Pro and Binance. A higher premium indicates stronger buying pressure from U.S. investors. Additionally, Coinbase is one of the most utilized spot exchanges by U.S. institutional investors. Recently, the Coinbase Premium showed negative values starting yesterday, but it rebounded significantly after a sharp price drop. Notably, when the premium is in negative territory, the market tends to rebound. This rebound suggests that when excessive panic selling occurs on Binance, which has a higher proportion of small investors, U.S. institutional investors are likely to adopt an aggressive buying strategy.