Key Points
- Bitcoin’s Coinbase Premium Index (CPI) turns positive, indicating increased coin accumulation by US investors.
- Despite a recent price rally, negative sentiment continues to follow Bitcoin.
Bitcoin’s CPI Turns Positive
The Coinbase Premium Index (CPI) for Bitcoin has shown a positive value after a ten-day period of negative returns, according to a report by an anonymous CryptoQuant analyst. The CPI measures the difference in Bitcoin’s price on Coinbase and Binance. A positive CPI suggests higher Bitcoin pricing on Coinbase, indicating strong buying interest from US investors. Conversely, a negative CPI signals decreased trading activity on the US-based exchange. As of now, Bitcoin’s CPI stands at 0.006.
Coinciding with this, the Coinbase Premium Gap for Bitcoin was 4.48, further confirming increased activity from US Bitcoin holders. This is the first time the metric has been positive since May 18th, according to CryptoQuant data.
Bitcoin’s Korean Premium Index Trends Downward
Despite the positive CPI, the Korean Premium Index (KPI) for Bitcoin has been on a downward trend since April 15th. The KPI, also known as the Kimchi Premium, measures the gap between Bitcoin prices on South Korean exchanges and other exchanges. The current KPI for Bitcoin is 0.78, indicating that demand for the coin among Korean investors is at its lowest since the start of the year.
Bitcoin’s price has risen by 10% in the past 30 days, trading at $71,148 at the time of writing. However, despite this price rally, negative sentiment continues to follow the coin, with a weighted sentiment of -0.355. This suggests a bearish bias among market participants, despite daily profits made by coin holders.
Data shows that for every Bitcoin transaction that ended in a loss in the past few weeks, 1.8 transactions have returned a profit. Despite this, the negative sentiment persists, indicating a cautious approach among market participants.
