Even amid a turbulent market as sellers push Bitcoin (BTC) price lower, the Coinbase premium, an indicator of strong institutional demand, has remained on a 20-day streak. This constant demand from US-based investors has led to an optimistic forecast for BTC price.
Bitcoin’s Coinbase premium can be seen as an indication of the positive stance of US investors. It measures the gaps between the BTC price on Coinbase Pro – an exchange favored by US investors – and other international exchanges. This higher buying rate is a clue of a bullish market sentiment.
Furthermore, notable Bitcoin investor, PlanB, with a model based on the relationship among BTC price, stock-to-flow ratio and scarcity, suggests an imminent price surge. Given current trends, his prediction indicates a potential rally to $118,000.
However, such a significant price jump is not guaranteed. Bitcoin’s performance depends on various factors, including regulatory developments, technological advancements, and macroeconomic influences. Therefore, investors should approach this forecast cautiously.
In conclusion, despite market fluctuations driving Bitcoin’s price lower in the short term, strong demand from US investors, as showcased by Bitcoin’s prolonged Coinbase premium, may be a sign of a boost in BTC price in long term. Nonetheless, investors should always gauge the risk parameters due to the inherent volatility of digital currencies.
