Bitcoin (BTC) Trades Flat While Coinbase Premium Rises, Suggesting U.S. Investors Are Buying the Dip

While the world's largest digital asset is trading flat in the early hours of the session, CoinDesk market data shows that it's up 4% on the week.

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BTC

Bitcoin

is flat in the early hours of the session on Friday, remaining in a tight range after a rally of more than 90% since the start of the year.

The world’s largest digital asset is trading at $50,197, and it’s up 4% on the week.

An expected Bank of Japan rate cut isn’t doing that much to move the market, even though a low interest rate policy is usually what drives risk-on sentiment and positively impacts BTC prices.

One metric to watch instead is the ‘Coinbase Premium’. Tracked by CryptoQuant, it measures the price difference between BTC on Coinbase Pro (USD) and Binance (USDT), demonstrating the dollar demand for bitcoin (as opposed to crypto-native demand).

“The Coinbase Premium is gradually rising, indicating that buying pressure from U.S. investors is supporting the trend. Additionally, we can observe that whale buying activity is being detected incrementally,” CryptoQuant analysts explained in a recent update.

Part of this movement would include BTC ETF inflow, which has hit $386.27 million so far this week, according to SoSoValue data.

That being said, some market observers are concerned that a staked ether exchange-traded fund (ETF), which may be closer than ever to getting approved, could put a damper on institutional BTC interest.

Youwei Yang, chief economist at BIT Mining, says that an ETF that gives investors access to ETH yield from staking would be something that BTC ETFs can't match, as they just give exposure to price appreciation.

“This has created a lot of buzz, especially considering how much of bitcoin's rally was fueled by ETF hype. And let's be honest: while there's speculation around Solana or Litecoin ETFs, Ether is still the only other crypto asset with a real existence in U.S. spot ETF. That makes it a go-to option for institutions waiting and watching on the sidelines, ready to move when the timing feels right,” Yang said.

But for now, it's still a waiting game. At least until the BoJ's move is official, as the usual crypto-natives like Arthur Hayes are counting on BTC going parabolic as a result.

DEX Volume Has Nearly Doubled in Past Year

Centralized Exchanges (CEXs) have always had their eyes on Decentralized Exchanges (DEXs) since the concept took off in 2018 with the advent of modern Automated Market Maker (AMM) engines – the technology at the center of the product category.

But as the year continues, and crypto mergers and acquisitions heat up maybe there'll be a renewed interest in DEXs, considering the massive jump in volume on the platforms in the last year.

According to data from Messari, in the last year, trading volume on DEXs has jumped from around 6% of all volume to 12%. In May, that number got closer to 25% as up-and-coming DEX Hyperliquid caught the eye of the market, including crypto's most aggressive traders.

But are DEXs and CEX's competitors? No, says OKX President Hong Fang.

Speaking with CoinDesk earlier this year in the run-up to Consensus Hong Kong, Fang said that the two are complementary.

"The crypto-native audience will want to be able to use CEX for reliability and DEX for catching innovations. Such supply-demand dynamics will drive further adoption of DEX to enable innovation while supporting the gradual maturity of the crypto regulatory framework," Fang said at the time.

News Roundup

Trump’s CFTC Nominee Brian Quintenz Says Congress Key to Boosting Crypto Innovation and Consumer Protection

President Trump's nominee for chairman of the Commodity Futures Trading Commission (CFTC), Brian Quintenz, highlighted the importance of Congress in setting clear boundaries for crypto to simultaneously foster innovation and protect consumers during his Senate confirmation hearing on Thursday.

As CoinDesk previously reported, Quintenz, the former CFTC commissioner and later head of policy at venture capital firm a16z, asserted that upcoming market structure legislation from Congress would provide the necessary clarity for entrepreneurs while still ensuring consumer safeguards.

However, senators expressed concerns regarding the vacancies at the CFTC—particularly the absence of Democratic commissioners—but Quintenz declined to commit to urging Trump to fill these positions, emphasizing presidential discretion in such matters. He also acknowledged the potential resource needs should the CFTC become the primary regulator for digital commodities, suggesting a "technology-first approach" to enhance the agency's efficiency.

Moreover, Quintenz defended the role of prediction markets as legitimate tools for hedging and risk management, a perspective shared by a bipartisan group of senators aiming to legalize these markets.

Aave is Now on Sony's Soneium

Aave has launched on Soneium, an Ethereum Layer-2 blockchain supported by electronics giant Sony. This