After falling below ,000, bitcoin has stabilized above the ,000 mark. In contrast, South Korea has seen a notable rise in the premium for bitcoin. South Korea’s Bitcoin Premium Rebounds After Hitting Recent Low Recently, bitcoin (BTC) saw its infamous premium in South Korea drop below 1% after nearly hitting 10% in mid-April. Current data […]
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Bitcoin Coinbase Premium Index Has Turned Positive At 0.006, Why This Is Important
The Bitcoin recent foray into ,000 price territory has again become a hot topic among investors, with many looking at a positive price outlook. As a result of this fascinating price action, the vast majority of long-term holders have seen their holdings cross into profit zone. Particularly, the positive outlook seems to be positive among US-based investors, as shown by the Coinbase premium turning positive. Some see the return of the Coinbase premium as a bullish signal that could continue to drive the price higher.
Coinbase Premium Index Flips Positive
The Coinbase Premium Index (CPI), which had been trading in the negative since May 18, has now turned positive, according to a cryptocurrency analyst who cited data from CryptoQuant. The Coinbase Premium refers to the difference in Bitcoin’s price on Coinbase versus other major exchanges.
When the premium turns positive, it means Bitcoin is trading at a higher price on Coinbase compared to Binance and, subsequently, other major crypto exchanges. This is important because it shows increased demand for Bitcoin on one of the largest US-based crypto exchanges. On the other hand, a negative premium indicates a lack of substantial buying pressure from US-based traders.
Since Coinbase is a popular entry point for new US crypto investors, a premium price indicates money is flowing into Bitcoin. At the time of writing, data from CryptoQuant shows that this premium recently reached 13.11. While this may seem small, it definitely indicates the beginning of buying pressure that could send Bitcoin on another leg higher
Interestingly, this flip into a positive Coinbase premium has come with a less bullish outlook on Bitcoin among Korean and Asian-based investors, at least in the short term. This information is revealed by CryptoQuant’s Korea Premium Index, which has been on a downtrend in the past two weeks.
Bitcoin Continues To Hold Strong
At the time of writing, Bitcoin is trading at ,095 and is up by 4.31% amidst increased buying momentum, with the Bitcoin Open Interest recently reaching its all-time high. While a positive Coinbase Premium is a bullish indicator, the context around why it’s happening matters greatly in determining where Bitcoin’s price may go next.
A large part of the positive premium could be attributed to individual large holders called whales, with on-chain data showing instances of huge Bitcoin transfers from Coinbase to unknown private wallets.
As mentioned earlier, a sustained positive premium and interest from institutions and retail buyers is the most promising scenario for Bitcoin to build on. However, interest from Coinbase whales alone may not be enough to fuel a prolonged, substantial price rally. For Bitcoin to continue its upward trajectory, there must be a corresponding rise in the interest shown by retail investors.
South Korean Bitcoin Premium Rises to 2.23% Amid Market Volatility
This week, bitcoin’s price briefly exceeded ,000 per coin before declining after the movement of Mt Gox bitcoins, yet the premium for bitcoin in South Korea has significantly increased. Having fallen below the 1% range, the premium on South Korean exchanges has now climbed to 2.23%. Bitcoin Premium in South Korea Grows Bitcoin (BTC) saw […]
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South Korea’s Crypto Premium Drops Below 1% as Bitcoin and Ethereum Prices Align Globally
South Korea’s infamous crypto premium has diminished significantly, with bitcoin and ethereum prices now aligning closely with the weighted global averages, albeit with a minor premium. The BTC premium stands at 0.84%, while ETH’s premium is in a similar range. South Korea’s Crypto Premiums Slides When BTC reached its all-time high in March, the leading […]
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South Korea’s Bitcoin Premium Narrows, Yet Remains Above Global Average
Recent figures show that despite bitcoin’s downturn in price, premiums in South Korea have diminished yet remain around ,800 to ,000 higher than BTC’s weighted global average price. Further metrics reveal that the South Korean won still ranks as the second most traded fiat currency against bitcoin, accounting for 2.07% of all spot bitcoin trades, […]
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South Korea’s Crypto Market Continues to Defy Global Trends With Premium Prices
Metrics reveal that cryptocurrency premiums in South Korea consistently outpace the global average. As of now, bitcoin exchanges hands at ,245 per piece globally, while on the South Korean platform Upbit, it’s being traded at ,513 each. Additionally, March witnessed a notable increase in Upbit’s trade volume, skyrocketing by 172.25% from February’s data. Ethereum, Solana, […]
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XRP ETF Premium Primed For Monumental Leap: Eyes Set On $500
XRP enthusiasts are in a frenzy after prominent community figure Chad Steingraber proposed a scenario where an XRP exchange-traded fund (ETF) could trade at a staggering 100x premium.
Steingraber, a seasoned game designer, laid out his thoughts in a recent post, igniting discussions about the potential trajectory of an XRP ETF, particularly in light of the ongoing push for institutional adoption of the altcoin.
Targeting A 0 XRP ETF Share Price
Steingraber’s speculation centers around the price at which an XRP ETF’s shares might trade. His hypothesis hinges on the crypto reaching an unprecedented price of per coin. In this scenario, he theorizes that the corresponding ETF could soar to equally unprecedented heights, potentially reaching a solid 0 per share.
The actual underlying asset price does NOT have to skyrocket. The fund can trade at MASSIVE Premiums.
Let’s say #XRP breaks ATH @ , its ETF fund could literally trade at 100x premium if the institutional demand kicks in.
Yes, that’s right, a 0 #XRP Institution Premium.
https://t.co/bwN6cGmmZd pic.twitter.com/tHyy4fkbeK
— Chad Steingraber (@ChadSteingraber) March 27, 2024
This hefty premium, according to Steingraber, would be fueled by a surge in institutional interest in the ETF. He cites the Grayscale Litecoin Trust (LTCN) as a prime example.
Similar to his proposed XRP ETF, LTCN trades at a significant premium over Litecoin’s current market price. Despite Litecoin hovering around , investors in LTCN are currently paying a premium of over 0 per Litecoin equivalent within the trust.
Can Arbitrage Opportunities Emerge?
The prospect of such a high premium has sparked discussions about potential arbitrage opportunities. X user Zack, in response to Steingraber’s post, questioned whether individuals holding XRP could exploit this price disparity. Steingraber acknowledged the possibility, particularly if the issuing ETF allows for in-kind deposits, where investors can directly exchange their token for ETF shares.
However, he cautioned that in-kind deposits are still a rarity in the ETF market. While Steingraber expressed optimism about the future adoption of this practice, its absence presents a hurdle for immediate arbitrage opportunities.
The XRP community has long advocated for asset managers, especially industry giant BlackRock, to launch an XRP ETF. They believe such a product would significantly bolster the value of XRP by increasing its accessibility to institutional investors.
A Speculative Outlook With Underlying Uncertainties
It’s crucial to remember that Steingraber’s vision is entirely speculative. As of today, no asset manager has taken concrete steps towards applying for an XRP ETF. Furthermore, the justification for such a high premium rests heavily on the assumption of substantial institutional demand, a factor that remains uncertain.
The applicability of the Grayscale Litecoin Trust comparison also requires further scrutiny. The specific structure and features of an XRP ETF would significantly influence whether a similar premium dynamic would emerge.
A Reality Check For Investors
While Steingraber’s prediction has certainly captured the community’s imagination, investors are advised to approach it with a healthy dose of caution. The approval timeline for an XRP ETF hinges on the US Securities and Exchange Commission’s stance on cryptocurrency ETFs.
Additionally, competition from other potential ETFs could play a role in determining the premium, if any.
Featured image from Freepik, chart from TradingView
Bitcoin Coinbase Premium Returns To Neutral: Buying Push Already Over?
The positive Bitcoin Coinbase Premium that drove the latest rally above ,000 has dissipated, suggesting buying has already slowed down.
Bitcoin Coinbase Premium Gap Has Returned To Neutral Levels
CryptoQuant Netherlands community manager Maartunn explained in a post on X that the Bitcoin Coinbase Premium Gap has declined back toward the neutral line.
The “Coinbase Premium Gap” here refers to a metric that keeps track of the difference between the BTC prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
When the value of this metric is positive, it means that the price listed on Coinbase is greater than that on Binance right now. Such a trend implies that the buying pressure on the former is higher than that on the latter platform (or alternatively, the selling pressure on there is just lower).
On the other hand, a negative value can imply the selling pressure on Coinbase is higher than on Binance as the price of the cryptocurrency listed there is lower.
Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the past few days:
The chart shows that the Bitcoin Coinbase Premium Gap had taken to notably positive values as the latest upward push in the asset’s price had occurred. Since then, though, the metric has fallen, with its value approaching zero.
It would seem that the buying pressure on the platform contributed to the surge. The fact that the rally has slowed since the metric returned to neutral levels may add further evidence.
This isn’t unnatural for this year, however, as the Bitcoin price and Coinbase Premium Gap have shown a pretty tight relationship since the start of 2024.
Coinbase is popularly known as the preferred platform of American institutional investors, while Binance hosts more global traffic. As such, the premium’s value provides insight into how the behavior of the US-based large holders differs from that of world users.
Since the Coinbase Premium Gap has been the driver of the recent price surges, buying from these institutional entities could potentially have provided the fuel.
As the indicator’s value has now neared the neutral mark, it would imply that these whales have lifted their foot off the gas. Given the close relationship the metric and BTC price have held recently, it may be worth keeping an eye on how things develop in the coming days.
BTC may register some decline if the premium flips into the red from here. Naturally, a continuation of positive values would be a bullish sign instead.
BTC Price
At the time of writing, Bitcoin is trading around the ,100 level, up more than 11% over the past week.
Solana Demand Soars As Institutions Buy Up SOL At A Massive 870% Premium
Solana (SOL) looks to be attracting the attention of institutional investors, with this Solana fund trading as high as an 870% premium following SOL’s bullish momentum. These investors’ interest in the SOL token isn’t surprising as on-chain metrics suggest it is still undervalued, and a parabolic rise might be on the horizon.
Grayscale Solana Trust Trades At A Premium
Per data from Grayscale’s website, the Grayscale Solana Trust (GSOL) is currently trading at 7 per share, representing a significant premium from SOL’s current price. The premium had risen to 870% on March 8 when GSOL was trading at 0. Shares in the fund are designed to track the value of SOL’s price, allowing institutional investors to have exposure to the token without holding it.
The disparity between the share price of GSOL and SOL’s price might be because institutional investors are limited in the means to gain exposure to SOL. As such, a fund like GSOL could see its price increase exponentially (just like now) when there is increased institutional demand for the SOL token.
Institutional interest in SOL is also evident from NewsBTC’s recent report that crypto-focused asset manager Pantera Capital is raising funds to buy 0 worth of SOL. Investors are likely to jump on this opportunity, considering that these SOL tokens will reportedly be sold at a fixed price of .95, meaning there is an opportunity to make significant gains from the deal.
SOL Still Greatly Undervalued
Crypto analyst Hansolar suggested that SOL was still undervalued when he mentioned that the crypto token might not take off until BTC and ETH hit new all-time highs (ATH). He also predicted that SOL could rise to as high as 0 in this bull cycle. Meanwhile, the argument about SOL being undervalued is backed by the fact that it is still far off from its ATH of 0.
Crypto tokens are known to set a new ATH in every bull run, and there is every likelihood that it won’t be different for SOL this time around. Moreover, SOL and the Solana network are gaining much traction heading into this cycle, which should contribute to more price surges for the SOL token.
Solana recently registered an ATH in the number of daily new addresses, with many users onboarded into the ecosystem. This increased interest in the network has been partly due to its DeFi landscape, which is going head-to-head with Ethereum’s, and the current meme coin frenzy on Solana, which has attracted investors.
At the time of writing, SOL is trading at 2, up over 2% in the last 24 hours, according to data from CoinMarketCap.
South Korea’s Bitcoin Premium Hits 2-Year High, Surpassing Global Rates by $4K
The latest data reveals that the premium on bitcoin in South Korea has escalated to its highest level in more than two years. At 7:30 a.m. Eastern Time (ET) on Thursday, the weighted global average price for bitcoin hovers between ,800 and ,000, whereas on the South Korean exchange Upbit, bitcoin’s price stands at ,076 […]
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