Market analysts generally attribute the index’s prolonged presence in negative territory to a relative weakening of buying interest or increased selling pressure in the US.
According to CoinGlass data, the index had previously remained in negative territory for 98 days. This streak ended on August 25th when the index rose to 0.0052%.
However, recent data reveals that the price difference between Coinbase and Binance has once again entered a prolonged negative trend.
However, the Coinbase premium index alone does not prove that institutional investors in the US are withdrawing capital from the Bitcoin market.
The index reflects the relative price difference between the two exchanges, but does not provide direct information about investors’ identities, trading purposes, or total capital movements.
Therefore, assessing the trend of US-based investors towards Bitcoin requires examining spot exchange-traded fund (ETF) flows, trading volumes, and other market indicators together.
The current negative outlook stands out as a signal of relative demand weakness in the US market.
*This is not investment advice.
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