Institutional Buying of Bitcoin Resumes in the US

The widening Coinbase premium suggests significant institutional buying of Bitcoin, while the potential surge in spot Bitcoin ETF inflows indicates a substantial increase in capital entering the market.


Bitcoin continues to hover around the $70,000 mark. The cryptocurrency market has witnessed subdued activity amidst economic events, including signs of overheating in the US with the release of the PCE inflation data. However, the Coinbase insurance fee delta indicates that institutional investors are buying back in.

Institutional buying activity began to emerge on March 27, and the Coinbase insurance fee delta turned green again by the end of March 29, following the Fed’s preference for the PCE inflation measure. Analyst Maartunn revealed that since the morning of March 30, the Coinbase insurance fee delta has exceeded 50. He affirmed that US institutions have started buying back Bitcoin.

These figures are often used to determine when US institutions start buying Bitcoin, as it is a highly accurate indicator. This suggests the likelihood of increased capital flow into Bitcoin ETFs in the coming week, ahead of the Bitcoin halving expected in mid-April.
The Coinbase premium is the difference between the Coinbase Pro price and the Binance price. A higher value typically indicates strong buying pressure from US investors on the cryptocurrency exchange Coinbase. Traders can closely monitor data and trading volumes to confirm market direction.

Analysts at Ryze Labs revealed that the gap between hedge funds and asset managers continues to widen. This difference indicates that while asset managers continue to buy Bitcoin futures contracts, hedge funds are short-selling. In the current price uptrend, this move hints at a potential short liquidation phase, which could fuel the next upward movement of Bitcoin.

Related: BlackRock CEO Very Bullish as Bitcoin ETF Hits $17B
Analyst Michael van de Poppe noted that Bitcoin’s sideways action has kept it around $70,000. However, he assures that Bitcoin is still following its four-year cycle. This cycle may come as a surprise to many. Over a five-year period, $70,000 per Bitcoin is considered a cheap price.