Bitcoin’s price fired on all cylinders over the weekend after the release of weaker-than-expected inflation data in the United States. Interestingly, the analyst presented data and a fresh perspective on the impact of the USA on BTC and the entire cryptocurrency market.

US institutional players: main catalysts of the recent BTC rally

Crypto analyst Burak Kesmeci revealed in a post on social media platform X that the Coinbase Premium Index has been the main indicator driving Bitcoin’s price over the past two years. The Coinbase Premium Index is an on-chain indicator that measures the difference between the BTC price on the American Coinbase exchange (USD pair) and the global Binance exchange (USDT pair).

Typically, when the value of the metric increases or moves towards the positive side, it indicates increasing demand from US investors who are willing to pay more than other global investors to purchase the flagship cryptocurrency. On the other hand, the decline of the Coinbase Premium Index below zero means that American investors are buying less than investors in other parts of the world.

Ultimately, the Bitcoin Coinbase Premium Index offers insight into US investor sentiment (mostly institutional players) and how it differs from sentiment on global exchanges such as Binance. According to Kesmeci, this indicator has a direct correlation with the price of Bitcoin, which suggests that investor demand in the US plays a huge role in the dynamics of the BTC market.

The analyst wrote on X:

Looking at the chart, this relationship is quite clear: during periods when the index remained positive, Bitcoin rose from 41,000. to 126 thousand, while in periods when it became negative, it dropped from 126 thousand. up to 60 thousand

Kesmeci noted that this trend can be seen in recent price action, as the “easing of negative pressure” in the Coinbase Premium Index has triggered a positive rally in Bitcoin’s price. After the index turned positive over the past few days, BTC’s price has surged to over $73,000.

Analyst published further data showing that the Coinbase Bitcoin Premiun Index is quite green on an hourly basis. “We can confirm with data that the locomotive transporting Bitcoin from 66,000 to 73,000 is positive sentiment from American investors (especially whales),” Kesmeci concluded in another post.

Bitcoin price at a glance

At the time of writing, BTC is trading at around $73,330, reflecting an escalate of over 1% in the last 24 hours.