The broader crypto market nosedived as investors in the US took advantage to buy the Bitcoin dip in hopes of recovery
Some United States institutional investors recently leveraged the sudden crash in Bitcoin (BTC) price to fill their bags. The rapid market fluctuations caused by the significant turbulence have triggered massive losses. Rather than stay away from the market during this time, this group of traders have reinstated their convictions and stance by plunging in more funds.
Coinbase Premium Index Shows High Institutional Demand For BitcoinÂ
Noteworthy, the crypto market faced a significant downturn after several weeks of maintaining a positive momentum.Â
From hitting $103,000 a few days earlier, Bitcoin’s price crashed to $94,000. US traders have launched an aggressive buying strategy, probably with the hope that the market will recover quickly and they can make more profits.
In a December 10 report, blockchain analytics platform CryptoQuant pointed out that the Coinbase Premium Index experienced a significant surge from below -0.05 to 0.15.Â
In other words, Coinbase Premium is recording a surge as Bitcoin prices dip. This metric is important because it provides a detailed picture of the demand from institutions and retailers.
Specifically, the Coinbase Premium Index measures the percentage difference between the price of Bitcoin on Coinbase Pro, a platform with several institutions, and Binance, a platform that retail investors largely dominate. A positive result connotes high demand from institutions rather than retail and vice versa.
Crypto Market Records Slight ReboundÂ
There has been some recovery, and most cryptocurrencies have recorded some gains, although they are still far from their levels as of last week.Â
The flagship cryptocurrency traded at $97,464.56 in this writing, corresponding with a 1.51% dip in the last 24 hours. BTC’s market cap is still inching closer to $2 trillion and may eventually attain this level before the year ends.
Regarding trading volume, traders and investors have a very high level of optimism. The 24-hour trading volume for Bitcoin has seen a 98.06% rise, reflecting confidence and trust in Bitcoin’s future potential.Â
Also, Ethereum (ETH) is trading at $3,756.62, requiring less than 9% of its current level to hit $4,000. Like in the case of BTC, traders are engaging with Ethereum, which is evident in its trading volume of $64.11 billion.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
