Coinbase Premium Turns Positive as US Demand for Bitcoin Surges

The price of Bitcoin on Coinbase has surpassed that on Binance for the first time since May, indicating strengthened US-based demand. This 'Coinbase premium' tracks the difference in price between the two exchanges and is seen as an important indicator of buyer interest.

Following a recent rally, which saw Bitcoin's price rise from approximately $63,000 to over $80,000, the Coinbase premium turned positive on Friday. According to CoinGlass data, this marks the first shift in favor of Coinbase since May.

The increase in demand may be linked to the growing interest in spot Bitcoin ETFs traded in the US. A total of $3.51 billion flowed into these products, with BlackRock's IBIT fund leading the inflows. As Coinbase provides custody services for many ETFs, a connection is drawn between the influx of capital and price movement on the exchange.

The Coinbase premium needs to remain persistent to sustain the rally, but if Bitcoin breaks through its 50-week moving average at approximately $81,000, further signals could emerge that the rally is strengthening.