Bitcoin’s fall scares investors! A market dynamic that characterized the recent rise in the bitcoin (BTC) to historic highs changed. This is because it is now signaling weaker demand in the United States for the market’s main cryptocurrency.
The seven-day moving average of the indicator called Coinbase Premiumwhich tracks the difference between bitcoin prices on the Coinbase exchange listed on Nasdaq and the offshore giant Binanceturned negative, according to data tracked by CryptoQuant.
In other words, bitcoin is now trading at a discount on Coinbase, which serves as custodian for eight of the 11 spot ETFs that debuted in the US two months ago.
The development likely reflects relatively weaker net buying by US investors. Inflows into spot ETFs slowed on Monday, with Grayscale’s ETF seeing a record outflow of $642.5 million. Fidelity’s ETF accumulated just $5.9 million, the lowest daily inflow on record.
O Coinbase Premium soared to a 12-month high of 0.16 during bitcoin’s recent uptrend from $48,000 to new highs above $73,500 last week.
Bitcoin crash drawn
Since then, the cryptocurrency has fallen more than 12% to $64,000, according to data from CoinDesk. The CoinDesk 20 Index, a broader market gauge, fell 19% to 2,446 points.
Analysts predict a deeper decline in the price of bitcoin if inflows into ETFs struggle to gather pace.
Source: Atrevida
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
