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The Bitcoin Coinbase Premium Index suggests that US investors sold more than others during the crypto’s latest crash.
Bitcoin Coinbase Premium Index recently turned deep red
As noted by an analyst in a CryptoQuant afterwhales on Coinbase Pro appear to be behind the latest dump.
The “Coinbase Premium Indexis an indicator that measures the percentage difference between the Bitcoin price listed on Coinbase Pro (USD pair) and that listed on Binance (USDT pair).
Coinbase Pro is popularly known for being used by investors in the US (especially large institutional ones), while Binance is getting a more global traffic.
Therefore, the price differences listed on these two crypto exchanges can indicate which investors are selling or buying more.
When the statistic has a positive reading, it means that the value of BTC on Coinbase is currently higher than on Binance, suggesting that US investors have been under more buying pressure recently.
On the other hand, negative premium values suggest that US holders are currently dumping more than global investors.
Here is a chart showing the trend in the Bitcoin Coinbase Premium Index over the past year:
The value of the metric seems to have been red in recent days | Source: CryptoQuant
As you can see in the chart above, the Bitcoin Coinbase Premium Index recently joined the Crash.
This means that US investors have dumped more aggressively than investors from the rest of the world over the past week.
Also, as can be clearly seen in the chart, a similar trend was seen in early May, when the price of BTC crashed from $40k to $30k.
The Quant notes that while Coinbase was observing this sell-off, the Bitcoin Korea Premium Index showed some interesting behavior. The graph below shows this trend.
Looks like this metric had a green value recently | Source: CryptoQuant
The Korea Premium Index measures the difference between prices on South Korean crypto exchanges and those on other exchanges.
The chart shows that the indicator showed positive spikes during both the current crash and the one in May.
This implies that while US investors were dumping, Korean investors focused on “buying the dip”.
At the moment of writing, The price of Bitcoin is floating around $16.8k, down 15% from the past week. In the past month, the crypto is down 11% in value.
BTC has been stuck in consolidation under $17k in the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com