Bitcoin’s price is fluctuating as a result of a battle between two major players in the cryptocurrency world, Binance and Coinbase. According to Quant, a leading financial analytics firm, the price of Bitcoin is directly tied to the competition between these two platforms. Stay tuned for more updates on this developing story.
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A quant recently discussed the relationship between Coinbase’s spot volume dominance vs. Binance’s and its impact on Bitcoin price. The analyst shared a chart showing Binance’s overwhelming dominance in spot volume compared to Coinbase over the past decade. Despite this, Coinbase remains significant in the Market as a custodian for Bitcoin spot ETFs like BlackRock’s IBIT and Grayscale’s GBTC.
The analyst pointed out a pattern where rises in Coinbase’s spot trading volume have preceded cryptocurrency value surges, while declines have led to Bitcoin price drawdowns. The spot volume ratio between Binance and Coinbase spiked in 2023, with Binance’s volume 53 times higher due to the zero-fee scheme for Bitcoin trading pairs. However, Coinbase’s volume has recently increased as Bitcoin spot ETF-related news intensified.
The quant concluded that the dynamics between these exchanges have a direct impact on Bitcoin price, reflecting a constant battle among Market giants. Currently, Bitcoin is trading at around $61,800, down 3% over the past week.
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1. What is the significance of the Bitcoin price battle between Binance and Coinbase?
– The battle between Binance and Coinbase can impact the price of Bitcoin, as both platforms have a large influence on the Market.
2. How is Quant involved in this Bitcoin price battle?
– Quant has revealed data showing how the prices on Binance and Coinbase are linked, shedding light on the dynamics of the Market.
3. Why is it important to pay attention to this Bitcoin price battle?
– Understanding the relationship between Binance and Coinbase can help traders make informed decisions when buying or selling Bitcoin.
4. Can the Bitcoin price be manipulated by these exchanges?
– While exchanges like Binance and Coinbase can influence the price of Bitcoin to some extent, it is unlikely that they can entirely manipulate it.
5. How can I use this information to enhance my trading strategy?
– By monitoring the price movements on Binance and Coinbase, traders can anticipate potential changes in the Market and adjust their strategies accordingly.
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Win Up To 93% Of Your Trades With The World’s #1 Most Profitable Trading Indicators
