Bitcoin, the increased likelihood of approval of BlackRock’s spot ETF, and the appellate court’s approval of Grayscale’s spot Bitcoin ETF application process have led to significant increases in BTC and altcoins.
While BTC rose above $ 35,000 for the first time since May 2022, this mobility in BTC also had a positive impact on altcoins.
CryptoQuant CEO Ki Young Ju, who has made a name for himself with his predictions and shared data about Bitcoin, made a new post.
Ki Young Ju, who examined the Coinbase Premium Index, stated in his post that the index was rising rapidly.
“BTC Coinbase premium soared.”
Looking at the chart shared by Ju, it can be seen that the Coinbase Premium Index is in the positive zone and is rising rapidly with the BTC price.
This means that institutional investors are not actively selling and are buying spot BTC.
What is Coinbase Premium Index?
The Coinbase Premium Index is a tool used to determine the difference between the Bitcoin price on Coinbase Pro and exchanges like Binance.
The index’s premium reflects whether institutional investors are actively selling or buying in the spot market.
The increase in the premium in the index is interpreted as a sign that institutional investors are actively entering the market and starting to buy BTC.
Coinbase Premium, on the other hand, is mostly used by large crypto investors.
The increase in premiums in the index is seen as a sign that the purchasing power of Bitcoin and cryptocurrencies in the market is increasing and whales are accumulating.
As the buying volume in the crypto market increases, the premium in the index increases even more.
$BTC Coinbase premium just skyrocketed.https://t.co/CBvH58cfIG pic.twitter.com/2YI87IfsD0
— Ki Young Ju (@ki_young_ju) October 23, 2023
According to the chart shared by CryptoQuant CEO, positive ETF news seems to have triggered US institutional investors. At this point, purchases by institutional investors may be behind the BTC price rise.
Because it is thought that the spot Bitcoin ETF will be approved in the USA and these approvals will result in corporate companies switching to Bitcoin.
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/whats-behind-the-rise-in-bitcoin-new-share-from-cryptoquant-ceo/