Cryptocurrency brokerage firm FalconX’s Head of Research believes that Bitcoin (BTC) will experience significant upward volatility in the coming months.
David Lawant stated on social media platform X that the current Coinbase BTC premium discount reminds him of the situation in August 2023 when Bitcoin’s trading price was around $25,000 and subsequently rebounded to a historical high of nearly $74,000.
“Is it always the darkest before dawn? Based on my calculations, the last time Coinbase premium had this negative value was a few months before the massive rebound from October 2023 to March 2024.”
Source: David Lawant/X
The Coinbase Bitcoin premium tracks the percentage difference between BTC prices on Coinbase Pro and on the cryptocurrency exchange Binance. Coinbase primarily serves US customers, including major institutions, while Binance caters to a more global customer base.
The substantial discount in the Coinbase premium index indicates weaker purchasing pressure from US investors, which aligns with previous bottoms in Bitcoin’s price.
Lawant suggests that Bitcoin may skyrocket to new heights in the coming months as he believes US investors will eventually return to compete for Bitcoin.
“There is something telling me that the next six to twelve months will be glorious and possibly turbulent. Let’s see!”
Last month, macro expert Raoul Pal stated that cryptocurrencies are approaching the “banana zone,” which is a sustained period of upward movement for digital assets. He pointed out that politicians tend to distribute stimulus programs in the form of “candy” during election periods, leading to increased inflation and consequently driving up the prices of Bitcoin and cryptocurrencies.
“Look, the last quarter of an election year is always the real banana zone for all assets. It always has been. So, you know, the probability of everything completely breaking down by autumn is very, very high.”
I mean, how long does it take for ETH, Bitcoin, and SOL to break their recent highs? It could take two weeks. It could take two months. It really doesn’t matter, but it will accelerate.”
At the time of writing, Bitcoin is valued at $62,113.
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