The head of research at crypto brokerage FalconX thinks the coming months will see the return of massive upward volatile moves for Bitcoin (BTC).
David Lawant says on social media platform
‘Always darkest before dawn?
By my calculations, the last time the Coinbase premium was this negative was a few months before the huge rally from October 2023 to March 2024.”
The Coinbase Bitcoin premium index tracks the percentage difference between the price of BTC on Coinbase Pro and the price on the crypto exchange Binance. Coinbase primarily serves US customers, including large institutions, while Binance focuses on a more global customer base.
A deeply discounted Coinbase premium index indicates weak buying pressure from US investors, a condition that has coincided with Bitcoin price bottoms in the past.
According to Lawant, Bitcoin will likely play an important role in the coming months float to new heights as he believes US investors will eventually return and bid for BTC.
“Something tells me the next six to 12 months will be fantastic – and probably volatile. Let’s see!”
Last month, macro guru Raoul Pal said crypto is moving closer to the “Banana Zone,” or a period of sustained uptrend for digital assets. He noted that during elections, politicians tend to “hand out sweets” in the form of stimulus packages, leading to higher inflation and in turn higher prices for Bitcoin and crypto.
“Look, the backend quarter of an election year is a real banana zone for all assets. That’s always the case. So you know there’s a very, very good chance that things will be completely broken come fall.
I mean, how long before ETH, Bitcoin [and] SOL break their recent highs? It may take two weeks. It could be two months. It doesn’t really matter, but then it speeds up.”
At the time of writing, Bitcoin is worth $62,113.
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