Bitcoin and altcoins have seen a significant rise in value, with Bitcoin topping $35,000 for the first time since May 2022. This surge was driven by the expected approval of BlackRock (NYSE:BLK)'s spot exchange-traded fund (ETF) and the endorsement of Grayscale's spot Bitcoin ETF application process by an appellate court.
CryptoQuant CEO Ki Young Ju highlighted a noticeable increase in the Coinbase (NASDAQ:COIN) Premium Index. This index contrasts Bitcoin prices on Coinbase Pro with other platforms such as Binance, providing insights into institutional investors' activity in the spot market. The recent uptick suggests that these investors are accumulating spot Bitcoin rather than selling it.
The rise in premiums is indicative of an expansion in purchasing power and accumulation by large crypto investors, often referred to as "whales". An increase in buying volume typically leads to a higher premium. The positive news around ETFs seems to have stimulated US institutional investors, potentially contributing to the price escalation of Bitcoin.
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