Bitcoin & Ethereum Coinbase Premium Hits 7-Week Bullish Streak — Here’s What’s Driving the Surge
Crypto's blue chips keep defying gravity—Coinbase traders are paying up for BTC and ETH like clockwork. The premium isn’t a fluke; it’s institutional FOMO in action.
Whales are stacking, not selling
Seven straight weeks of positive premiums scream one thing: big money isn’t waiting for a dip. While retail traders hyperventilate over pullbacks, Coinbase’s deep-pocketed clients keep writing checks.
The institutional playbook
Forget ‘buy low, sell high’—Wall Street’s crypto strategy now looks more like ‘buy high, pray for higher.’ The premium? Just the cost of admission when you’re late to the party but still want a seat at the table.
As always in crypto, the real question isn’t ‘why’—it’s ‘how long until the leverage flushes out?’ But for now, the suits are writing the narrative. And their checks aren’t bouncing.
US Investors Keep Crypto Prices Afloat
In a new post on the X platform, on-chain analyst Burak Kesmeci revealed that United States investors have been active in the market over the past few weeks. The crypto analyst explained that this correlates with the Bitcoin and Ethereum prices withstanding bearish pressure in recent weeks.
This on-chain observation is based on the Coinbase Premium Index, which tracks the difference between the crypto prices on the US-based Coinbase exchange (USD pair) and global Binance exchange (USDT pair). This metric reflects the sentiment of the US institutional entities (the major players on Coinbase) compared to those on global exchanges.
Typically, when the price premium on Coinbase has a positive value, it implies increasing demand from US investors, who are willing to spend more than other global investors to buy cryptocurrencies (Bitcoin and Ethereum, in this case). On the flip side, the Coinbase Premium Index falling beneath the zero mark signals that US investors are buying less compared to the global traders.
According to Kesmeci, the Bitcoin and Ethereum Coinbase Premium Index (excluding the abrupt dip in BTC on May 29) has been in the positive territory since May 9, 2024. This 47-day streak suggests high buying activity from US institutional investors despite geopolitical tensions.
Kesmeci added:
In the U.S., institutional investors and bitcoin & Ethereum ETF investors (except for Fidelity) continue their heavy purchases through Coinbase (and have been for weeks). This is why Coinbase Premiums are showing strong positive momentum. Because of this (in my opinion), despite the crises, we haven’t seen a sharp drop in Bitcoin or Ethereum in the market.
In essence, the on-chain analyst believes the Bitcoin and Ethereum prices have been able to weather the storm with the rising tensions in Asia because US investors have been active in the market. Naturally, risk assets tend to succumb to bearish pressure during unstable conditions like wars, global pandemics, and so on.
Bitcoin & Ethereum Price
As of this writing, the price of BTC stands at around $107,100, reflecting no significant movement in the past 24 hours. Meanwhile, the Ether token is valued at around $2,420, with a mere 0.6% price jump in the past day.
