Reports from blockchain analytics company CryptoQuant shows that Coinbase Premium Index entered positive territory for the second time since April 2022. The index first increased on June 30 to a high of 0.217 before falling back into the downtrend.
After trading in the red for weeks, the market temporarily reached the $1 trillion level. The biggest cryptocurrency in the world, Bitcoin, and numerous significant altcoins saw substantial gains. Furthermore, Coinbase’s Bitcoin price premium stabilizes after rising to around 0.075.
The Bitcoin Coinbase premium difference also seemed to be narrowing during the past week. This implied that there might be a decrease in the selling pressure.
In essence, the positive premium shows that whales are reinforcing their stockpile and continuing to buy at a greater level. Additionally, this pattern shows rising investor activity and confidence in Coinbase.
It is worth noting that Coinbase Premium, a statistic intended to assess institutional whale movement, compares the price of Bitcoin on Binance and Coinbase Pro against Tether and USD. Even if the most recent gain doesn’t necessarily portend a bull run, it does suggest that institutional buyers are present in the price range.
Is Bitcoin recovering?
In May, a severe market downturn caused the BTC premium on the biggest cryptocurrency exchange with US headquarters to drop to the lowest (negative) levels since 2019. In only June, Bitcoin experienced its most erratic quarter in a decade, dropping below $20,000 twice.
Just the beginning was the death spiral of the Terra environment tokens and the dire macroeconomic circumstances. Following that, some well-known crypto enterprises cut workers, and lenders of digital assets filed for bankruptcy and liquidation.
In an interview with CNBC, Mike Novogratz, CEO of Galaxy Digital, provided his most recent analysis of the status of the cryptocurrency market and predicted that it is nearing the bottom following the liquidation of large leveraged positions. But until a bullish narrative changes the general mindset, choppiness can continue in the near term. He also added that despite the volatility, the crypto market is recovering again.