Coinbase’s premium gap has turned positive, meaning Bitcoin is trading at a higher price on Coinbase than on Binance.
Coinbase is typically used by US institutions, hedge funds, and high net worth individuals using Coinbase Prime/Pro.
The positive gap confirms that the rally is being driven by spot buying demand from US institutions.
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This is a fairly positive signal for the ongoing rally as it is not caused by leveraged bets.
Why the rally stalled
As US trading closed, major cryptocurrencies rose to the top right.
Institutional purchases are often based on algorithms and are tied to standard U.S. stock market business hours (9:30 a.m. to 4:00 p.m. ET).
The moment the US trading day ended (4:00 p.m. ET), aggressive buying pressure from these institutions ceased.
Bitcoin is currently trading just above the $94,000 level.
