In the early hours of Wednesday, Bitcoin’s “Coinbase Premium Index” tipped into the green once again, signaling a renewed demand for the leading cryptocurrency in the United States. This trend coincided with the initial results of the U.S. election that indicated a lead for pro-crypto Republican candidate Donald Trump.
The “Coinbase Premium Index” is a crucial metric that measures the price difference of Bitcoin between the off-shore exchange Binance and Coinbase. The latter, frequented by U.S. users and substantial institutional market participants, is often considered a barometer for stateside demand for the cryptocurrency. The price difference noted a positive shift during Wednesday’s early Asian hours, surging to 0.06, its highest since September 14. This data, tracked by analytics firm CryptoQuant, provides significant insight into the market trends of the cryptocurrency.
Cryptocurrency rallies are considered more robust and sustainable when Bitcoin is traded at a premium on Coinbase. This trend is indicative of stronger buying pressure emanating from sophisticated traders and stateside institutions, which can often drive up the overall demand and price of the cryptocurrency.
In the Asian market, Bitcoin experienced a surge of over 2%, breaching the $71,000 mark. This increase mirrored the early trends projected by the Associated Press that showed Trump leading in several key states, including Kentucky, Florida, West Virginia. These wins augmented Trump’s electoral college votes by four. At press time, the Associated Press reported Trump leading on the electoral map with 101 votes, while his rival Kamala Harris trailed with 71 votes.
Interestingly, the decentralized predictions platform Polymarket has traders predicting a 75% chance of Trump securing the presidential election. This prediction could further influence the trading patterns of Bitcoin on Coinbase, and by extension, its price on the cryptocurrency market.
This development in the cryptocurrency market underscores the influence that political and socioeconomic factors can have on digital trading platforms. As the U.S. election progresses, the global financial landscape will continue to observe the impact of political outcomes on the market trends of leading cryptocurrencies like Bitcoin.
