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Bitcoin’s performance in the past week has been nothing short of remarkable. The leading cryptocurrency, which had been languishing under the $87,000 mark for several months, made a dramatic turnaround, surpassing the $90,000 level. This surge in price is particularly noteworthy as it marks one of Bitcoin’s best performances to date in the year 2025. The reasons behind this sudden upswing remain a topic of speculation among investors and analysts alike. Some believe it could signal the start of a new bull cycle, while on-chain data suggests a shift in investor sentiment toward the positive. This optimistic outlook is buoyed by the narrative that the Bitcoin bull run might be gearing up for another race.
A significant factor contributing to this bullish momentum is the attention from exchange-traded fund (ETF) investors. Maartunn, a crypto analyst, highlighted in an April 25 post the role of these investors in the recent price rally of Bitcoin. The focus has been particularly on the Coinbase Premium Gap, an indicator that measures the price difference between Bitcoin on the US-based Coinbase Pro and the global Binance exchange. A positive gap suggests that Bitcoin is commanding higher prices on Coinbase than on Binance, indicating aggressive purchasing by US-based investors through ETF issuers who use Coinbase for liquidity. This premium gap has remained positive for more than 265 straight hours, signaling a strong demand from institutional players in the US, possibly due to the regulated nature of their investments through ETFs or custodial platforms.
This extended period of positive Coinbase Premium Gap is not a new phenomenon but one that has historical precedence of correlating with bullish market conditions. It is seen as a reliable indicator of US institutional and large investor sentiment towards Bitcoin, willing to pay a premium over market prices for the cryptocurrency. Such patterns of investment behavior have, in the past, been associated with phases of accumulation and significant price breakouts. With the metric maintaining a positive streak for the fifth-longest period since the inception of spot Bitcoin ETFs in January 2024, there is a strong suggestion that Bitcoin’s current bullish momentum could be sustained. This could lay the groundwork for the next major leap in Bitcoin’s market valuation.
At the moment, Bitcoin’s price trajectory seems to be on an upward curve, having breached the $95,000 barrier, marking a significant milestone since its last peak in February. Over the past 24 hours, it has recorded a 2% increase, while the past week has seen a surge of more than 13% in its value. Such milestones are not just numbers but reflect a growing confidence among investors and a broader acceptance of Bitcoin as a valuable asset in the investment ecosystem. If this trend continues, we may well be witnessing the early stages of another monumental bull run, powered by a blend of institutional investment, positive investor sentiment, and strategic market dynamics. Keep an eye on the Coinbase Premium Gap and other related indicators, for they hold clues to Bitcoin’s immediate financial future.
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