Bitcoin Coinbase Premium Gap Has Just Observed A Plummet

Data shows the Bitcoin Coinbase Premium Gap has plunged into the negative territory following BTC's latest high above $98,000.

Bitcoin (BTC) price hit a new all-time high (ATH) above $98,000 on Friday, continuing its rally after a strong rebound from the $83,000 lows. As BTC price rallied to new highs, the Coinbase Premium Gap also turned positive.

However, as the dust settles from the latest record top, the Coinbase Premium Gap has plunged into the negative territory once more. This observation suggests that the buying pressure on the leading U.S. exchange has cooled off.

Coinbase Premium Gap Disappears As BTC Price Pulls Back From ATH

The Coinbase Premium Gap is an indicator that measures the difference between Bitcoin prices listed on Coinbase (USD pair) and Binance (USDT pair). A positive value indicates that BTC price on Coinbase is higher than on Binance.

This trend suggests that Coinbase is observing a higher buying or lower selling pressure than Binance. Conversely, a negative value suggests that Binance is observing the higher buying pressure.

As explained by CryptoQuant community analyst Maartunn in a new Quicktake post, the recent positive Coinbase Premium Gap has just disappeared.

“Bitcoin price hit a new all-time high two days ago. During the rally to the new record highs, the Coinbase Premium Gap also turned positive. However, as BTC price stalled, the indicator also showed a steep decline to neutral-negative levels.”

A chart showing the trend in the Bitcoin Coinbase Premium Gap over the last couple of days:

Coinbase is the main platform for American investors, especially large institutional entities, while Binance has users worldwide. As such, the Coinbase Premium Gap tells us how U.S.-based whales differ in behavior from offshore ones.

Given the tight relationship that the metric has held with BTC price action this year, American institutional investors seem to be running the show. With the indicator declining to neutral-negative levels, these entities may be done with buying for now. If so, BTC price could see a pause in its rally.

The metric is still to keep an eye on in the coming days, though, as things can change quickly, with a reversal to positive levels potentially signaling the green light for the run.

Whale Moves 500 BTC As Old Coins Continue To Be Transferred

In some other news article, a whale has just moved 500 BTC between 7 and 10 years old, as Maartunn pointed out in an X post.

“A Bitcoin whale has just moved 500 BTC that are between seven and ten years old, according to data from a crypto tracking platform. At current prices, the BTC stack is worth around $49.2 million.”

Generally, transfers of old coins are a sign that the market veterans are looking to sell. Thus, this transaction, which has seen the movement of a stack worth over $49 million, could very well be a whale looking to harvest their massive profits.

As reported recently, the transfer of old BTC coins has been a common occurrence throughout 2024. Many of these coins are now finally becoming profitable after being bought during the 2014 bear market.

With BTC price setting new record highs and institutional interest in the leading digital asset remaining strong, many are keeping a close eye on the movements of these old coins.