How Coinbase Premium Signals Bitcoin’s $100K Breakout

• Bitcoin rose above $100,000, driven by strong demand from US investors for Coinbase.
• The Coinbase Premium indicator reveals uptrends but indicates short-term declines ahead.
• The market capitalization rises as Bitcoin trading volume grows, indicating increased interest.

Bitcoin has crossed the $100,000 mark, attracting the attention of investors worldwide. The cryptocurrency posted a 1.65% gain, pushing its price to $100,894.81 with a market capitalization of $1.99 trillion.

This upward movement highlights the impact of the Coinbase Premium Index, a critical measure that reflects US investor demand. The indicator shows how market behavior affects Bitcoin’s trajectory and can indicate further price increases.

Coinbase Premium Indicator: Key Market Signal

In November 2024, when the Coinbase Premium Index turned positive, Bitcoin rose from $69,000 to $108,000. This trend indicates a growing interest from US-based investors in using Coinbase.

During late November and December, the index oscillated around the 14-day simple moving average (SMA). These shifts indicated an alternation of buyer and seller. When the indicator rose sharply, it indicated increased buying pressure, which could push the market bullish.

However, as Bitcoin approaches $70,000 by December 30, 2024, the index is starting to decline. This indicates short-term corrections despite the overall bullish outlook.

As of December 31, 2024, the Coinbase Premium Index had reached its lowest point in 12 months. This decline raised concerns about diminishing institutional demand and a more cautious approach among US investors.

Bitcoin market value and future prospects

As Bitcoin trades exceed $100,000, its market capitalization continues to expand, with 19.8 million BTC in circulation. Over the past 24 hours, trading volumes rose by 61.25%, to $49.59 billion, indicating increased investor interest.

Read also: Donald Trump appoints pro-crypto candidates to key positions

The upcoming political landscape in the United States may further impact Bitcoin’s performance. President-elect Donald Trump has pledged to position the United States as a cryptocurrency hub, sparking speculation about favorable regulations and potential market gains in 2025.

Bitcoin’s rise above $100,000 reflects a combination of strong investor sentiment, strong trading activity, and key market indicators such as the Coinbase Premium Index.