The head of research at FalconX, a crypto brokerage firm, anticipates significant volatile movements upwards for Bitcoin (BTC) in the coming months.

David Lawant shared on X that the current discount in Coinbase’s BTC premium resembles conditions from August 2023, when Bitcoin traded around $25,000 before surging to nearly $74,000.

“Is it always darkest before the dawn? Based on my calculations, the last time the Coinbase premium was this negative was just before the massive rally from October 2023 to March 2024.”

Source:
David Lawant/X

The Coinbase Bitcoin premium index monitors the price difference between BTC on Coinbase Pro and Binance. Coinbase primarily serves US customers, including large institutions, while Binance caters to a more global audience.

A heavily discounted Coinbase premium index suggests weak buying pressure from US investors, a trend historically associated with Bitcoin price bottoms.

Lawant believes the next few months could witness Bitcoin reaching new highs, expecting US investors to return and bid on BTC.

“I have a feeling the next six to twelve months will be splendid – and quite possibly volatile. Let’s wait and see!”

Last month, macro expert Raoul Pal suggested that crypto is approaching the “Banana Zone,” a phase of sustained uptrend for digital assets. He pointed out that during elections, politicians tend to stimulate the economy, leading to higher inflation and consequently, higher prices for Bitcoin and other cryptocurrencies.

“In the backend quarter of an election year, it’s truly the banana zone for all assets. Always has been. So, there’s a very, very, very high probability that by autumn, things are really taking off. How long before ETH, Bitcoin, and SOL break their recent highs? It could be two weeks. It could be two months. The timing is less important than the acceleration.”

As of the latest update, Bitcoin is valued at $62,113.

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Disclaimer: Opinions expressed on The Daily Hodl are not financial advice. Investors should conduct their own research before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please be aware that your transactions and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the purchase or sale of any cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.