Coinbase Premium Drop May Indicate Positive Six to 12 Months Ahead for Bitcoin, Predicts FalconX Expert
The head of research at FalconX, a crypto brokerage firm, anticipates significant volatile movements ahead for Bitcoin (BTC) in the upcoming months.
David Lawant, in a post on the social media platform X, draws parallels between the current discount on Coinbase’s BTC premium and conditions seen in August 2023. Back then, Bitcoin was trading around $25,000 before embarking on a rally that propelled it to nearly $74,000.
Lawant muses, “Always darkest before the dawn? According to my calculations, the last time the Coinbase premium was this negative was a couple of months before the massive rally from Oct 2023 to March 2024.”
The Coinbase Bitcoin premium index monitors the price difference between BTC on Coinbase Pro and Binance. Coinbase mainly caters to US customers, including large institutions, while Binance serves a more global clientele.
A deeply discounted Coinbase premium index signifies weak buying pressure from US investors, a trend historically linked to Bitcoin price bottoms.
Lawant foresees Bitcoin soaring to new heights in the coming months as he expects US investors to re-enter the market and bid on BTC. He optimistically states, “Something tells me the next six-12 months will be splendid – and probably volatile. Let’s see!”
Macro guru Raoul Pal recently expressed that the crypto space is edging closer to the “Banana Zone,” a phase characterized by sustained uptrends for digital assets. He highlighted how politicians tend to stimulate the economy with packages during elections, leading to increased inflation and subsequently higher prices for Bitcoin and crypto.
Pal remarked, “Look, the backend quarter of an election year is true banana zone for all assets. It always is. So you know that you’ve got a very, very, very high probability that by autumn things are utterly ripping. I mean, how long before ETH, Bitcoin [and] SOL break their recent highs? It could be two weeks. It could be two months. It doesn’t really matter, but then it accelerates.”
As of the current moment, Bitcoin is valued at $62,113.
