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Opinion: Disappearance of Bitcoin premium on Coinbase may indicate slowdown in US institutional buying
Summary: According to reports from CoinDesk, the trading premium of Bitcoin on Coinbase has started to disappear. This premium is usually seen as an indicator of strong demand from US investors, especially institutional investors. As a cryptocurrency exchange platform listed on NASDAQ, Coinbase has a wide user base in the US, particularly favored by large institutions; ...
According to reports from CoinDesk, the trading premium of Bitcoin on Coinbase has started to disappear. This premium is usually seen as an indicator of strong demand from US investors, especially institutional investors. As a cryptocurrency exchange platform listed on NASDAQ, Coinbase has a wide user base in the US, particularly favored by large institutions; in contrast, Binance has more retail users globally.
In the past few bull markets, the premium of Bitcoin on Coinbase was once significant, interpreted as a signal of increased buying pressure from mature traders and institutions in the US. The current decline in premium may reflect a decrease in the activity of such funds.
The appearance of a negative premium indicates a weakening relative demand from US investors, further supporting the assessment that Bitcoin prices may experience a longer period of correction.
Note: The Coinbase Bitcoin premium index measures the percentage difference in price of Bitcoin between Coinbase Pro (USD trading pair) and Binance (USDT trading pair).
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Link: Opinion: Disappearance of Bitcoin premium on Coinbase may indicate slowdown in US institutional buying [Copy]
