Coinbase Premium Index turned green for the first time in three weeks. As of December 16th, the index recorded a significant dip before entering a ranging momentum. The retrace was attributed to large sell-offs in Bitcoin as investors took profits during the holiday season.
Tides turned for the crypto market as Bitcoin broke $100k again on Monday following the US Congress’s official announcement of Trump’s electoral win. BTC smashed $102k as sentiments on the new administration operating a pro-crypto government grew.
Coinbase Premium Index and Global Bitcoin Adoption
The United States has the largest capital market for institutional investors seeking Bitcoin assets. One of the popular US investing firms, Microstrategy, continues to drive Bitcoin adoption in the US. Between November and December 2024, the firm made $1 billion in BTC purchases. In recent news, MicroStrategy has acquired an additional $101 million worth of Bitcoin.
From Bitcoin ETFs to the cryptocurrency itself, US hedge funds and investors constitute the largest owners in the Bitcoin market. But this is not always the case. Coinbase Premium Index monitors the price of Bitcoin on American exchanges compared to Binance.
When the index turns positive, it indicates there’s more demand for BTC by Americans than in other parts of the world. And the opposite holds when the index flips negative.
Analytics from CryptoQuant shows that the American market has been experiencing dominant buying pressure in recent times. This supports data from Bitcoin’s 14-day Simple Moving Average, which turned positive for the first time in three years.
The last time the Coinbase Premium Index flipped positive, BTC rallied from $69k to $108k. CryptoQuant’s analysts suggest that US buyers could be back in action as the market continues to experience a higher price momentum.
In the meantime, the trend for Bitcoin adoption looks promising but is heavily hinged on the Donald Trump-led administration sticking with its pro-crypto policies.
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