The Bitcoin Coinbase Premium Index has recently turned negative, according to CryptoQuant. This index measures the price difference between Bitcoin on Coinbase Pro and Binance. It compares Bitcoin’s price in USD on Coinbase Pro with its price in USDT on Binance.
Bitcoin Cheaper on Coinbase Pro as Coinbase Premium Index Turns Negative
Positive Coinbase premium index suggests that Bitcoin is trading over its mean price on the Coinbase Pro while under on Binance. This shows healthy buying pressure from US investors on Coinbase. On the other hand, a negative value indicates that Bitcoin is trading lower on Coinbase Pro as compared to its value on Binance.
The negative Coinbase Premium Index observed recently means that there has been a departure from a strong buying sentiment by the US investors. This suggests that it is cheaper to Buy Bitcoin on Coinbase pro than on Binance. It points to a potential decrease in demand or a reduction in investor activity.
Falling Coinbase Premium Indicates Reduced Bitcoin Demand
Bearish here means a decline in the US investors’ interest in Bitcoin or a change in market dynamics. Because the premium for Bitcoin on Coinbase Pro is now lower than what it is on Binance.
Ultimately, these changes are important to understand the interaction with the market. In addition to this, these changes, as shown by CryptQuant, are valuable for analysts and investors studying Bitcoin investment activity.
