Coinbase Premium

Coinbase Premium is the gap between Coinbase Pro price (USD pair) and Binance price(USDT pair)

Definition

It's the price difference between Coinbase's BTCUSD pair and Binance's BTCUSDT pair.

Interpretation

Coinbase Premium is one of the indicators that shows a sign for "whale accumulation".

Coinbase Pro is considered to be the gateway for institutional investors purchase to cryptocurrencies. Thus, Coinbase Premium is used to track institutional whale's movement. Also, 2020 bull run was driven by institutional investors and high net-worth individuals in the U.S. which makes investors check Coinbase Premium more than ever.

For example. when the Bitcoin price continuously broke 20k, 30k, and 40k while the Coinbase premium was maintaining more than $50 premium. It indicates that during these dips, institutions or other whales were accumulating.

By value itself

It shows whether investors who use Coinbases' purchase strength

• High : Possible Strong buy from Coinbase

  Coinbase whales might be accumulating Bitcoin despite the high price

• Low : Possible Strong sell or dormant status from Coinbase

  Coinbase whales are not buying much as regular or possibly selling coins

By examining trend

It shows the Sentiment of Coinbase Whale or investors.

• Increasing trend : Possible Whale Accumulation

  It indicates that whales are strengthening their accumulation and continuously buying at a higher premium. In addition, it shows expanding interest and activeness of investors in Coinbase.

• Decreasing trend : Possible Whale Sell or dormant status of whales

  It indicates that whales are continuously selling at a lower premium. In addition, it shows decreasing interest and activeness of investors in Coinbase.