- Bitcoin surges past $100K, driven by strong U.S. investor demand on Coinbase.
- Coinbase Premium Index reveals bullish trends but hints at short-term dips ahead.
- Market capitalization rises as Bitcoin’s trading volume grows, signaling increased interest.
Bitcoin crossed the $100,000 milestone, drawing attention from investors globally. The cryptocurrency recorded a 1.65% gain, pushing its price to $100,894.81 with a market capitalization of $1.99 trillion.
This upward movement highlights the influence of the Coinbase Premium Index, a critical metric reflecting U.S. investor demand. The index shows how market behavior impacts Bitcoin’s trajectory and could point to further price increases.
Coinbase Premium Index: A Key Market Signal
In November 2024, when the Coinbase Premium Index turned positive, Bitcoin surged from $69,000 to $108,000. This trend signaled increasing interest from U.S.-based investors using Coinbase.
Throughout late November and December, the index fluctuated around its 14-day Simple Moving Average (SMA). These shifts indicated alternating buyer and seller dominance. When the index rose sharply, it suggested heightened buying pressure, potentially driving a bullish market.
However, as Bitcoin approached $70,000 by December 30, 2024, the index began to decline. This hinted at short-term corrections despite an overall bullish outlook.
By December 31, 2024, the Coinbase Premium Index reached its lowest point in 12 months. This drop raised concerns about diminishing institutional demand and a more cautious approach among U.S. investors.
Bitcoin’s Market Capitalization and Future Prospects
As Bitcoin trades above $100,000, its market capitalization continues to expand, with 19.8 million BTC in circulation. Over the past 24 hours, trading volumes have surged by 61.25%, reaching $49.59 billion, signaling heightened investor interest.
Read also: Donald Trump to Appoint Pro-Crypto Candidates in Key Positions
The upcoming U.S. political landscape may further influence Bitcoin’s performance. President-elect Donald Trump has pledged to position the United States as a crypto hub, fueling speculation about favorable regulations and potential market gains in 2025.
Bitcoin’s rise past $100,000 reflects a combination of strong investor sentiment, robust trading activity, and key market indicators like the Coinbase Premium Index.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
