The Coinbase Bitcoin Premium Index has finally flipped positive, ending an almost two-month trend of trading negative. This uptick comes as the price of Bitcoin snapped back from its negative trend since the start of this week. According to market data, the signs show U.S. investors are warming up to BTC.
Coinbase Premium and implications for BTC
CryptoQuant analyst Darkfost first pointed out the positive switch, and later echoed by MissCrypto. The analysts acknowledged that with the Coinbase Premium turning positive, it means the price of the coin on the U.S. exchange is slightly more expensive when compared to that of Binance.
By market metrics, the difference is at least $10. In retrospect, the BTC repricing is proof that there is a greater demand for Bitcoin among professional and institutional investors in the U.S. As pointed out, Coinbase Advanced markets the preferred platform for these whales to engage the market.
Since the start of the year, the Bitcoin price has fallen by at least 24%, and it is also down by 47% from its ATH of $126,198. As of writing time, the coin was changing hands for $67,151.18, up by 5.98% in 24 hours.
While the Coinbase Premium’s flipping is promising, MissCrypto pointed out that it is not a complete sign of a trend reversal. However, it implies the current price level is an interesting one for professionals and might signal a price bottom.
Headwinds to clear for Bitcoin breakout
According to data from recent research carried out by CoinShares, there is an overlap in the projections of quantum computing risk and BTC sentiment.
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The research firm noted that Bitcoin is at least 10 to 20 years away from being adversely impacted by quantum computers. It noted that before then, the ecosystem and its users would have found a way to combat this risk through soft forking.
Other major headwinds to note include the liquidity around spot Bitcoin ETF products. With BlackRock still selling the coin occasionally, a retracement of this bearish move can help reverse the Bitcoin price outlook.