Opinion: Bitcoin Premium Disappears on Coinbase, Signaling a Slowdown in U.S. Institutional Buying Pressure
BlockBeats News, July 29th, according to CoinDesk, the "premium" of Bitcoin on Coinbase has largely disappeared. This premium is often seen as an indicator of strong demand from U.S. investors, especially institutional investors. As a cryptocurrency exchange platform listed on Nasdaq, Coinbase has a wide user base in the U.S., particularly favored by large institutions; in contrast, Binance has more retail users globally.
In past bull markets, the premium of Bitcoin on Coinbase was once significant, which was interpreted as a signal of increased buying pressure from mature U.S. traders and institutions. The current diminishing premium may reflect a weakening in the activity of this type of capital.
The appearance of a negative premium indicates a renewed weakening of relative demand from U.S. investors, further supporting the assessment that the Bitcoin price may experience a longer period of correction.
Note: The Coinbase Bitcoin premium index measures the percentage price difference of Bitcoin between Coinbase Pro (USD pair) and Binance (USDT pair).
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