Bitcoin’s Coinbase Premium hits a 4-year low, CryptoQuant CEO Ki Young Ju shared in an X post on Friday. This comes as the crypto market braces for a deeper crash after a $6.3 billion hack on Binance crypto exchange.
Coinbase Premium Falls to 4-Year Low, Bullish or Bearish for Bitcoin?
CryptoQuant CEO Ki Young Ju noted the last time it was this low was in November 2022, right after the FTX collapse. Bitcoin formed its cycle bottom near $15,500-$16,000. He believes the market sentiment could turn bullish after the recent bear market.
“Coinbase Premium hit a 4-year low. The last time it was this low was in Nov 2022, right after the FTX collapse, when BTC bottomed. Market sentiment is bearish enough to be bullish, imo,” CEO Ki Young Ju posted, sharing a CryptoQuant chart.
Coinbase Premium Index measures the percentage price difference between an asset trading on Coinbase in USD pair and Binance in USDT pair. It provides a real-time signal of relative buying or selling pressure from the US market compared to global crypto trading platforms.
During market bottoms, it signals that Bitcoin is cheaper on Coinbase than Binance. Combining it with other on-chain data such as exchange flows and fund volume could help trigger buy-the-dip sentiment.
Bitcoin Price Plunges to $77K
A lower Coinbase Premium Index can make Bitcoin investors more cautious during falling crypto market sentiment. Bitcoin price has plunged more than 5% to around $77K today amid panic surrounding $6.3 billion.
Binance has pledged to pay all $6.3 billion from its SAFU Fund and the company’s funds. The crypto exchange has already reserved over $6.34 billion of company funds to cover this hack. $5 billion of these funds are already held in the exact token assets that were impacted.
However, Bitcoin price continues to hold near the $77K level. The 24-hour low and high are $76,443 and $81,840, respectively. Positive developments in the coming days could trigger upside momentum, but traders remain cautious until Binance withdrawals open.
Also Check: Binance Hack Live Updates
