Data: Coinbase Premium Approaching Yearly Low, Signal of Institutional Fund Withdrawal Evident

According to CryptoQuant data, the Coinbase premium indicator has plummeted to -$90, approaching one of the lowest levels this year. The last time such a strong negative premium appeared was in February 2025, when the indicator dropped to -$138, during a period of significant institutional investor withdrawals.

This indicator, which compares the Bitcoin spot prices on Coinbase Pro (mainly serving institutions and large holders) and Binance (dominated by retail investors), reveals the dominant market forces. In a healthy bull market, the premium is usually positive, indicating institutional buying activity; however, the deep negative premium of -$90 currently suggests that price movements are mainly driven by Binance retail traders, while professional investors opt for hedging, reducing positions, or waiting on the sidelines.

Continued negative premium implies that the market is dominated by emotional investors who react quickly to volatility and panic, potentially exacerbating selling pressure and leading to more severe pullbacks until institutions re-enter the market.

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