The price of the world’s largest cryptocurrency by market capitalization, Bitcoin has reclaimed the $21,000 level. The Bitcoin price has increased by 0.14% at the time of reporting, trading at $21,567. As the lead cryptocurrency started its recovery phase, so did the altcoins.
The overall crypto market too has seen a surge of 3.39% in the last 24hrs positioned at $952 Billion.
While the negative news is hovering around the crypto-verse, Coinbase Premium Index is indicating that major investors are returning to the crypto space.
During the bearish market, the metric had indicated one of the strongest downfalls in history. Coinbase has one of the highest market participants and this indication pointed out that its market participants were having a tough time finding liquidity in the market.
As the majority of the investors are from Coinbase, their average order size is higher when in comparison to centralized exchanges. Market participants try to add up more liquidity before they compete with any order and this is done so that they can avoid market volatility.
However, as the metric is on the positive end, it’s an indication that there is an increase in institutional investors and whale accumulation. The premium indication is being ignited northwards by investors and traders, this is made possible due to a surge in the market’s buy volume.
As the flagship has reclaimed its $20,000 level, there is an increase in buy volume in the crypto market.
Bitcoin Sees A Fall In Selling Pressure
As per the sources, Bitcoin miners have recovered most of the funds which were used for their operations to get stabilized. Hence, the selling pressure on the king currency has been reduced.
Another reason for the decreased selling pressure is the US dollar’s rally which crushes down financial assets on the crypto market and traditional markets.