Bitcoin (BTC), the world’s leading cryptocurrency, is making a strong attempt to reclaim the pivotal $60,000 mark following a sharp decline earlier this week. This recent upward momentum can be largely attributed to heightened activity among U.S. investors, as suggested by the latest dynamics in the Coinbase (NASDAQ: COIN) Premium indicator.
U.S. Investors Drive Bitcoin Recovery, Says Coinbase Premium
After two weeks of bearish performance, the Coinbase Premium, a key metric that reflects the purchasing behavior of U.S. Bitcoin (BTC) investors, has returned to positive territory. During the recent market downturn, the indicator plunged to -0.15%, according to on-chain analyst @IT_Tech_PL from the CryptoQuant community.
Today, the Coinbase Premium has bounced back to 0.1%, indicating that Bitcoin’s (BTC) price in the USD pair on Coinbase Pro is now 1% higher than the BTC/USDT rates on major spot exchanges. This shift suggests a growing interest among U.S. investors in acquiring Bitcoin (BTC) at current prices.
For context, when Bitcoin (BTC) reached its previous local high above $70,000, the Coinbase Premium surged to 0.4%. In contrast, by mid-January 2022, the indicator had dropped to -0.4%, highlighting the volatility in investor sentiment.
Bitcoin Price Surge Triggers Massive Liquidations
The recent rise in Bitcoin’s (BTC) price has led to $213 million in cryptocurrency liquidations, with nearly half of these positions being shorts. The impact was even more severe for Bitcoin (BTC) itself, where 61% of liquidated positions in XBT/USD pairs were shorts.
Growing Optimism Among Traders
As the market begins to recover from its recent slump, trader optimism is on the rise. A well-known on-chain analyst recently outlined ten reasons to be bullish on Bitcoin (BTC), citing factors such as its role in the U.S. presidential race, the exhaustion of major sellers, and the absence of risky CeFi services.
Echoing this sentiment, Real Vision CEO Raoul Pal expressed confidence in Bitcoin’s (BTC) resilience, describing the recent price drop to around $50,000 as merely a “shakeout,” rather than a cause for concern.
Related Topics:
