The rise in Bitcoin last week following the moderate statements of Fed Chairman Jerome Powell was short-lived. The profit taking that followed the rise caused Bitcoin to fall below $59,000.
As Bitcoin continues its struggle for $60,000, CryptoQuant analysts stated that the Bitcoin Coinbase Premium Index, which shows the BTC price difference on the Coinbase and Binance exchanges, has reached its highest point since July.
Analysts stated that this rise in the Bitcoin Coinbase Premium Index is a sign that Bitcoin is moving from international exchanges to US-based Coinbase and said:
“The return of Bitcoin to Coinbase from non-U.S. exchanges is a sign of greater demand for Bitcoin from U.S. investors, a trend that has historically been associated with higher prices.
“Increasing demand from US investors could push Bitcoin prices higher, and this pattern has historically been associated with rising prices.”
Bitcoin and Crypto Markets Expected to Revive!
Speaking to Coindesk, SOFA co-founder Augustine Fan said that there is stability in Bitcoin and Ethereum prices.
Fan said he expects a recovery in market activity after the US Labor Day on September 2, and that this recovery could continue with the non-farm payrolls data on September 6.
“The crypto market has not had an eventful week with BTC and ETH trading around +/- 1.5% from last week’s levels. However, ETF inflows remain subdued.
We expect the crypto market to revive after US Labor Day and next week’s NFP data, kicking off a busy Fall season that is typically bullish.”
*This is not investment advice.