Bitcoin’s price has recently skyrocketed, and data suggests Binance’s big players, or “whales,” might be the driving force.
The Coinbase Premium Gap Tells a Story
A key indicator, the “Coinbase Premium Gap,” measures the price difference between Bitcoin on Coinbase (USD) and Binance (USDT). A positive gap means Bitcoin is more expensive on Coinbase, usually indicating higher buying (or less selling) from US investors. A negative gap, however, suggests stronger buying pressure on Binance.
Recently, this gap plunged into negative territory, coinciding with Bitcoin’s price surge. This hints that Binance whales are leading the charge.
A Shift in the Usual Pattern?
Since the start of 2024, Coinbase whales (largely US institutional investors) have typically driven market movements. A positive Coinbase Premium Gap usually meant bullish action.
However, the recent data shows a different story. Binance whales have made several large purchases, triggering price increases before significant buying on Coinbase. While US investors are still active, the Binance whales seem to be setting the pace.
A New Market Dynamic?
Historically, a negative Coinbase Premium Gap might have signaled bearish activity. But with Binance whales seemingly leading the way, this isn’t the case right now. It’s still unclear whether this is a long-term shift or just a temporary trend.
Current Bitcoin Price
At the time of writing, Bitcoin is trading around $93,600, up over 11% in the last week.
