For the first time since the FTX collapse, the Coinbase Premium Index indicator has turned green.
According to CryptoQuant, an on-chain data and analytics company, the Coinbase Premium Index has gone green for the first time since the aftermath of the FTX collapse, indicating a shift toward an optimistic mood.
According to the chart above, the indicator fell as low as -0.1937 on the exact same day that the FTX disaster took place when Sam Bankman-Fried’s exchange filed for bankruptcy.
Coinbase Premium is the price differential between Coinbase’s BTC/USD pair and Binance’s BTC/USDT pair as a measure of whale accumulation. The indicator is used to track the migration of institutional whales.
Historically, the highs and lows of the Coinbase Premium Index have signaled possible strong buys and strong sells from Coinbase.
For example, when the Coinbase Premium reaches high values, it signals Coinbase whales may be accumulating Bitcoin regardless of the high price. However, the reverse also applies when the Index falls to low values, indicating Coinbase whales are either not buying as regularly or possibly selling their coins.
Looking back on the year, the Coinbase Premium Index has switched between red and green just barely, deviating from this pattern only during the two significant capitulation events recorded this year (Luna and FTX). This shows that the selling pressure from investors has been dying down recently, a sign that could prove to be bullish for the price of Bitcoin.
This indicates that investors have not yet made a choice in light of the present market conditions. At the time of writing, BTC is trading at $17,000.
Since the low below $16,000, Bitcoin has been trying to gradually make some recovery. However, the crypto is currently finding it difficult to leave the $21,000 level.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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