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, a social media platform, that the current discount on Coinbase’s BTC premium resembles conditions seen in August 2023, when Bitcoin traded around $25,000 before rallying to nearly $74,000.

“Always darkest before the dawn? Based on my calculations, the last time the Coinbase premium showed such negativity was a few months prior to the massive rally from October 2023 to March 2024.”

Source: David Lawant/X

The Coinbase Bitcoin premium index measures the percentage difference between BTC prices on Coinbase Pro and Binance. Coinbase primarily serves US customers, including large institutions, while Binance has a more global clientele.

A significantly discounted Coinbase premium index indicates weak buying pressure from US investors, a trend historically coinciding with Bitcoin price bottoms.

Lawant predicts that Bitcoin will likely surge to new heights in the next few months, as he expects US investors to return and bid on BTC.

“Something tells me the next six to twelve months will be remarkable – and likely volatile. Let’s wait and see!”

Last month, macro expert Raoul Pal mentioned that crypto is approaching the “Banana Zone,” a period of sustained uptrend for digital assets. He noted that election years often see stimulus packages that boost inflation and subsequently, the prices of Bitcoin and other cryptocurrencies.

“The latter part of an election year is always a banana zone for all assets. It consistently proves so. Therefore, there’s a very high probability that things will be booming by autumn.”

“At the time of writing, Bitcoin is valued at $62,113.”

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