Bitcoin Price Explosion Fueled By Binance Whales: Data
Data shows the Bitcoin Coinbase Premium Gap has plunged into negative territory, a sign that Binance whales may be the ones fueling the rally.
Bitcoin Coinbase Premium Gap Has Declined Alongside Latest Price Surge
As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin Coinbase Premium Gap has dropped to a negative value. The “Coinbase Premium Gap” refers to an indicator that keeps track of the difference between the BTC price listed on Coinbase (USD pair) and that on Binance (USDT pair).
When the metric has a positive value, it means the cryptocurrency is trading at a higher price on Coinbase than on Binance. Such a trend suggests the investors of the former are participating in a higher amount of buying (or lower amount of selling) as compared to the latter.
On the other hand, the indicator being under the zero mark implies that buying pressure may be stronger on Binance as the asset is going for a higher rate on the platform.
Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the last couple of days:
The value of the metric appears to have gone through a plummet | Source: CryptoQuant
As displayed in the above graph, the Bitcoin Coinbase Premium Gap saw a plunge into the negative territory, coinciding with BTC’s latest continuation to the recovery rally, a sign that whales on Binance may have provided the impulse for it.
Since the start of 2024, the pattern majorly observed has been that of the Coinbase whales leading the market. The platform is generally used by American investors, especially the large institutional entities, so the Coinbase Premium Gap essentially represents how the behaviour of the US-based whales has diverged from Binance’s global traffic.
The indicator being positive suggests that the American institutional investors could be buying. BTC has generally observed bullish price action whenever this trend has developed since January of last year.
From the chart, it’s visible that Binance whales have shown multiple large accumulation spikes during the last couple of days, and despite the pattern, it’s these spikes that have been kickstarting price surges, rather than Coinbase buying.
That said, the large American investors have also continued to play a role in the market at the same time, with a couple of buying spikes coming from them, in contrast to the Binance ones, adding to Bitcoin’s bullish price action. Thus, the Coinbase whales have certainly not lost their relevance.
Though, while in the past year, a negative Coinbase Premium Gap could have been taken as a bearish signal, the same isn’t true currently, given how Binance whales have actually been timing their buys ahead of the Coinbase whales. It only remains to be seen, however, whether this is a new dynamic for the market, or if it’s only something temporary.
BTC Price
At the time of writing, Bitcoin is trading around $93,600, up more than 11% in the last seven days.
The trend in the BTC price over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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