Crypto News- Recent data from CryptoQuant, tracking activity on local exchanges, points to a surge in buying pressure in the U.S. market as the driving force behind Ether’s 11% rally over the past week.
The surge in demand, notably from regulated exchange Coinbase (COIN), primarily serving U.S. investors, preceded the notable uptick in Ether (ETH) prices. This trend is evidenced by the “Coinbase premium,” an indicator highlighting the price gap between Coinbase’s ETH/U.S. dollar pair and Binance’s ETH/USDT pair.
Insights from Data: Ether Demand Surges Driven by U.S. Investors
CryptoQuant’s head of marketing, Ho Chan Chung, emphasized the role of U.S. demand in the recent Ethereum price action, noting that the Coinbase premium index clearly triggered the upward movement.
As the premium metric begins to climb once more, it suggests potential for further price gains in the weeks ahead. While Coinbase remains popular among crypto traders in the U.S. and Europe, Binance, originating from China, holds significant appeal among traders in Asia.
The anticipation of regulatory approval for a potential spot ether exchange-traded fund (ETF) in the U.S. may have fueled buying demand for the asset in the region. Notably, experienced and profitable traders began increasing their exposure to ETH as early as January.
While interest in ether investments has surged, some traders believe that an ETF approval could result in sustained, rather than explosive, growth for the second-largest cryptocurrency by market value. As of Tuesday, several prominent financial institutions, including Franklin Templeton, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, Galaxy, and Hashdex, had submitted applications for an ether ETF.
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