Amid massive Bitcoin bullish rally, data reveals major price warning Coinbase

 Amid massive Bitcoin bullish rally, data reveals major price warning Coinbase

Bitcoin, which exploded in 2021, has now stabilized at around $ 50,000 per bitcoin, with the price falling more or less over the past week.

The price of bitcoin, which has surged nearly 500% since that time last year, has surged amid Wall Street's institutional adoption, corporate interest, and the surge in retail traders - and some think there may be a lot more to it.

Now, recent market data has shown that the difference in bitcoin price between cryptocurrency exchanges Coinbase and Binance, known as the Coinbase premium, could serve as a signal to institutional investors or high net worth individuals buying bitcoins, with traders being warned to avoid Coinbase if the premium in priority.

Coinbase's significantly high premium is an upbeat signal, said Key Young Joo, CEO of CryptoQuant, which provides data on the Bitcoin and cryptocurrency market, in a conversation via Twitter DM. This points to the whales of Coinbase, which could be institutional investors or high net worth individuals. buying bitcoins .

While Coinbase's high premium may be an upbeat signal, it may not be very good for bitcoin traders on a platform that is gearing up for its highly anticipated debut in the stock market in the coming months. Last week, San Francisco-based Coinbase revealed possible developments that it fears could destabilize the price of Bitcoin and Ethereum, potentially disrupting its business.

The Coinbase premium changes from time to time, but if it is too high, I would say that professional traders should avoid using Coinbase,says Ki Yong Joo, adding that traders should watch the premium jump to negative values, pointing to the price of bitcoin. likely to fall as Coinbase whales sell bitcoins.

According to Ki Yong Joo, last month when Elon Musk's Tesla sparked a bullish rally in institutional bitcoins with a $ 1.5 billion bitcoin bet, Coinbase's premium surged to over $ 100.

Coinbase, with over 40 million users, is one of the world's largest bitcoin and cryptocurrency exchanges and is generally considered a booming cryptocurrency for newcomers to cryptocurrency. Coinbase's institutional trading department processed $ 1.5 billion of Tesla's Bitcoin investment earlier this month, according to media reports, which added that Coinbase's primary brokerage has more than five Fortune 500 companies as clients.

The Coinbase premium has been around for a while, and long-term traders use it to measure market strength.

Look at the Coinbase premium between October 2020 and November 2020, and in May 2019, you’ll see how strong bull markets are first resisted by derivatives players before they all flip and join the only up lot, says the crypto trader. and economist Alex Kruger on Telegram.

 Amid massive Bitcoin bullish rally, data reveals major price warning Coinbase

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