Bitcoin Breaks $82,000: Who Is Driving The Market?

Data of the Bitcoin Coinbase Premium Gap could hint at which part of the market has been behind the bullish price action over the weekend.

In a CryptoQuant Quicktake post, an analyst has discussed about the recent trend in the Bitcoin Coinbase Premium Gap. The “Coinbase Premium Gap” refers to a metric that keeps track of the difference between the Bitcoin price listed on Coinbase (USD pair) and that on Binance (USDT pair).

When the value of the indicator is positive, it means the the asset is trading at a higher value on Coinbase than Binance. Such a trend implies the users of the former are participating in a higher amount of buying or lower amount of selling as compared to that of the latter.

On the other hand, the metric being under zero suggests Binance could be witnessing the higher amount of buying pressure as the price on there is higher than on Coinbase.

Now, here is the chart shared by the quant that shows the trend in the Bitcoin Coinbase Premium Gap over the weekend:

As displayed in the above graph, the Bitcoin Coinbase Premium Gap has remained inside the positive territory recently, but a couple of spikes toward the negative territory stand out. Interestingly, both of these spikes preceded some degree of upward push in the cryptocurrency’s price, implying that the burst of buying that occurred on Binance was responsible for the surges.

Other than these spikes, the market has recently seen consistently higher buying pressure coming from Coinbase users, just like most other bullish phases this year. The main traffic of Coinbase is American investors, especially the large institutional entities, while Binance hosts a more global userbase. As such, the Coinbase Premium Gap reflects how the behavior of the US-based whales differs from global investors.

Around the time of the US presidential election results, the indicator had witnessed a jump to significant positive levels, as Coinbase users had reacted to the America-focused news.

While Coinbase users have been in the driving seat since then, Binance whales haven’t totally lost relevance as the strong effect on the price during the weekend shows.

It now remains to be seen how the indicator would develop in the near future as the BTC rally plays out and if more dips into the negative territory would take place.

Bitcoin briefly broke above the $82,000 level earlier in the day, setting a brand-new all-time high. Since this top, the coin has seen a minor pullback to $81,900.