Bitcoin Demand on Coinbase Shows Signs of Market Stabilization

Bitcoin's recent price fluctuations have sparked interest among traders and analysts. According to data from CryptoQuant, Coinbase's premium index has been steadily rising over the past week. This indicates sustained buyer interest despite $1.14 billion in profit-taking by traders.

The Coinbase Premium Index measures the difference between Bitcoin prices on Coinbase and Binance. A negative premium means that Bitcoin prices are lower on Coinbase than on Binance, indicating a slight cooling in demand from US buyers. However, the long-term trend for Coinbase remains stable, with the 14-day Simple Moving Average (SMA) of the premium index remaining above lows seen in February.

Analyst Amr Taha noted that network activity related to Coinbase remains high. For instance, Base blockchain revenue reached nearly $972,000 on May 19, which is higher than the figures from late March. This suggests that demand for Bitcoin is still strong, despite some profit-taking by traders.