Institutions Driving Bitcoin As Coinbase Premium Gap Hits $100 – Trump Win Brought Back US Demand

Bitcoin has surged to recent all-time highs, reaching $76,500, following Donald Trump’s victory within the US elections. This price breakout has reignited investor optimism, particularly amongst US traders, with demand increasing significantly for the reason that election results. Trump’s pro-crypto stance has played a key role in boosting market sentiment, especially amongst institutional investors.

Data from CryptoQuant reveals a notable surge in institutional demand, especially from US-based investors, which has recently propelled BTC’s price. The Coinbase Premium Index, a critical metric that tracks the difference between BTC’s price on Coinbase and other exchanges, turned positive for the primary time since October 18th, signaling a shift in market dynamics and the return of strong buying interest within the US market.

This surge in demand suggests that Bitcoin’s bullish momentum may only be starting, with analysts expecting continued upward pressure. As US institutional investors proceed to enter the market, BTC’s path to higher prices looks increasingly probable. The approaching weeks can be pivotal as market participants await further developments, including the Federal Reserve’s decision on rates of interest, which could impact BTC’s next moves.

Bitcoin Aggressive Buying On Coinbase

Bitcoin is entering a bullish phase following the election of Donald Trump as the brand new US president, a development that has reignited optimism amongst pro-crypto investors. In recent days, the worth has surged above previous all-time highs, driven by aggressive demand from US-based players. Trump’s stance on cryptocurrency, which has been favorable, has played a major role in fueling this recent wave of shopping for pressure.

Crucial data from CryptoQuant analyst Maartunn supports this bullish outlook. Maartunn highlighted that the Coinbase Premium Gap reached above $100 yesterday, a transparent sign of heightened demand within the US market.

Bitcoin Coinbase Premium Gap Hits $100 | Source: Maartunn on X

The Coinbase Premium Gap is the worth difference between Bitcoin on Coinbase, one in all the biggest US exchanges, and Binance, a worldwide exchange. When this gap increases, it suggests that US buyers are willing to pay a premium for BTC, indicating strong demand and the presence of great liquidity entering the market.

In line with Maartunn, this massive premium gap can only be attributable to a giant player bidding aggressively for BTC. This implies that institutional investors or major whales are driving the worth motion, adding fuel to the bullish sentiment.

With the US market showing such strong demand and the political environment becoming more favorable for crypto, Bitcoin’s path to recent highs appears promising. The subsequent few weeks can be crucial in determining how far this bullish momentum can carry BTC.

BTC Rises And Enters Uncharted Territory

Bitcoin has entered uncharted territory, now trading at $75,000 after several days of uncertainty surrounding the US election. The market has shown a really bullish sentiment, with BTC holding above its previous all-time high of $73,800, a key level that many analysts were watching closely. This price motion signals continued optimism amongst investors, with many expecting further upside in the approaching weeks.

BTC trading at $75K after breaking ATH
BTC trading at $75K after breaking ATH | Source: BTCUSDT chart on TradingView

Despite the positive outlook, Bitcoin’s price is at a critical juncture. If it fails to carry above the $73,800 mark, the worth could enter a consolidation phase, with potential support across the $72,500 level. If the worth holds above this level, it could maintain its bullish momentum and pave the best way for further gains.

Nonetheless, if Bitcoin falls below $72,500, it could signal a shift in momentum and set the stage for a deeper pullback. The subsequent few days can be crucial because the market continues to digest the outcomes of the US election and the potential impact of the Federal Reserve’s decisions on rates of interest. For now, so long as Bitcoin stays above these key support levels, the trail to recent highs stays clear, but any sustained drop could challenge the present bullish outlook.

Featured image from Dall-E, chart from TradingView

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