Key Notes
- The Coinbase Bitcoin Premium Index turned positive for the first time in a month.
- The indicator shows rising market sentiment amid US capital flows.
- Leading cryptocurrencies are still consolidating with slightly positive momentum.
Bitcoin (BTC) rebounded above $90,000 over the past week, as extreme fear sentiment and US capital flows showed signs of improvement.
On Nov. 21, the BTC price fell below $81,000. With the recent shift, the asset is trading close to $91,000 at the time of writing.
According to data provided by Coinglass, the Coinbase Bitcoin Premium Index (CBPI) turned positive for the first time since Oct. 30.
The Coinbase Bitcoin Premium Index is showing rising interest, primarily from US investors | Source: Coinglass
The indicator, which measures the Bitcoin price ratio between Coinbase and the global market, suggests that the digital gold is trading at a premium on the US-based exchange.
Moreover, Coinglass says that the CBPI acts as an important indicator for the US market since its positivity suggests increased US capital inflows and rising institutional interest, and vice versa.
Mistake or Opportunity?
The CBPI shows that US investors have been buying Bitcoin more than the global investors for the first time in a month.
Since the US is the world’s leading economy, rising institutional accumulation can have a positive impact on Bitcoin and, subsequently, the broader crypto market.
On Saturday, Nov. 29, Binance founder Changpeng Zhao and Robert Kiyosaki, the author of Rich Dad, Poor Dad, claimed that it would be a good time to buy Bitcoin as the market is entering a “quiet equilibrium.”
With Bitcoin’s price fall, El Salvador also came forward to buy 1,100 BTC when the asset was trading below $90,000.
However, amid retail uncertainty, data from the market predictions platform Kalshi suggests that traders remain bearish on BTC reaching $100,000 this year.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
