Coinbase market makers are no longer selling Bitcoin, but it might not be enough for bounce
The Coinbase bounty Index is a tool to determine the difference between the price of Bitcoin on Coinbase Pro and exchanges like Binance. The premium or discount on the index tells us whether institutional investors are actively selling or buying the spot asset, which is a direct indicator of market sentiment.
Previously, the CryptoQuant analyst noted that for the last 45 days, market makers at Coinbase were actively selling Bitcoin via trading bots since they have not had enough liquidity to satisfy the demands of their clients.
The main reason for the rebate surge was related to Bitcoin’s massive drop in the market, which led to a 40% devaluation of digital gold.
But according to the same index now, institutional traders are no longer selling their holdings actively but buying relatively large volumes of spot BTC, which pushed the index into the premium zone. It was the first time the indicator turned positive since April 2022 when the cryptocurrency market sell-off started.
The index is said to be one of many indicators that show a potential bounce to come in the cryptocurrency market. Previously, indicators such as fund flows to major funds and lenders, MVRV scores, and four-year trends showed that Bitcoin was on the verge of a reversal.
Unfortunately, even if every indicator on the market would show that it is time for Bitcoin to bounce, with the lack of inflows on the market, we will not see volatile upward movement on Bitcoin or any other cryptocurrency.
According to the volume indicator, traders and investors are not yet ready to push the asset in either direction as trading volume on various centralized exchanges remains below the average for the year.
