Some bitcoin indicators are still going the wrong way, challenging the bullish $70,000 holdout story
Key indicators such as ETF inflows cloud the bullish $70,000 holdout story
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- Bitcoin has held near $70,000 despite geopolitical tensions, rising oil prices and fading expectations for Federal Reserve rate cuts, underscoring the market’s resilience.
- But a deeply negative Coinbase Premium clouds the bullish holdout story.
- ETF inflows , a proxy for institutional demand, have slowed since last week,.
What do you call a market that consistently shrugs off headlines that usually send it tumbling? You call it resilient with a strong underlying demand support.
That’s the bitcoin story in recent weeks, as it the cryptocurrency held firm around $70,000 even as the Iran war rages, oil prices surge, and Fed rate-cut bets evaporate. This kind of defiance screams bullishness.
But hang on, some key indicators are still heading the wrong way, throwing a wrench into that bullish interpretation.
The first indicator is the Coinbase Premium, which measures the price difference between bitcoin on Coinbase, a Nasdaq-listed Exchange, and on the offshore giant Binance. Typically, a strong positive premium means U.S. institutional investors are bidding more aggressively than their global counterparts. A strong Coinbase premium has regularly featured during bull runs, including bitcoin’s first run to $100,000 in late 2024.
But right now, the Coinbase Premium is at its most negative in over a month, according to data source Coinglass. In other words, BTC trades at a discount on Coinbase, indicating a relatively softer demand from U.S. investors. The discount reappeared on March 19 and has been growing since.
