Coinbase has a negative premium index - Bitcoin could suffer

[BrolySSJ 7899]

With the price of Bitcoin steadily increasing over the last few days mainly bought about by Elon Musk and his large investment into the crypto-currency market namely Bitcoin, there are many people that are waiting for bitcoin to surpass the 50000 USD region. In fact I expect that there is many sales orders that have been set for this price in order for people to maximize on their profits.

 

However we may have to wait a much longer period of time in order to see the price of Bitcoin go past the 50000 USD price range. In a recent article it seems that coinbase has time to their premium index negative which implies that the difference in price between coinbase and binance exchange platform is quite large. This has resulted in there being many sales orders on the coinbase platform, even more so than the buying orders on the platform which could result in a major sell-off of Bitcoin from this exchange.

 

As we all know coinbase is one of the main cryptocurrency exchanges and therefore if there is a large fell off it could cause the price of Bitcoin to crumble or drop by a considerable percentage in the next few days. What are your thoughts on this and do you think that we will see a bitcoin price declined to this extent?

[yonkii 3205]

On 2/15/2021 at 8:20 AM, BrolySSJ said:

the difference in price between coinbase and binance exchange platform is quite large.

Right now Binance has a price of 49100 and Coinbase exactly the same. I have not noticed Coinbase having a premium all this time, but if there was one it means that the users of this exchange were buying higher for a while. We know that both these exchanges have the most users and perhaps Coinbase has more fiat incoming, making demand for Bitcoin higher in this exchange and pushing price in a premium. However, if this premium is reduced now and leveled with Binance, it may mean two things.

Either there are many arbitrage traders noticed and are now able to quickly fill this premium gap, or the interest for Bitcoin in Coinbase exchange started fading.

Edited February 16, 2021 by yonkii

[Froshk 1828]

The way bitcoin works actually baffles if many of this whales decides to buy a large amount of Bitcoin and that's  the opportunity for other  investors to take their profits.

[kryptonick 2659]

I've read about the Grayscale OTC market having a bargain price which was 10% lower than the actual in the crypto market. I don't know if this is what you want to discuss here, as any kind of small differences between crypto exchanges, is quickly covered by arbitrage trading.