Coinbase’s Bitcoin Premium Index Has Been Negative for 75 Days: A Record Has Been Broken—What Does This Mean?

The negative premium period on the US-based cryptocurrency exchange Coinbase, caused by the Bitcoin price falling below Binance’s, has reached its longest period to date.

According to CoinGlass data, the Coinbase Bitcoin Premium Index remained in negative territory for 75 consecutive days between May 19 and August 1. The index’s final value was recorded at -0.0959%, marking the longest period of negative premium seen since the indicator’s inception.

The previous record was a 40-day streak of negative premium recorded between January 16 and February 24. The current period also significantly surpassed the approximately 30-day period of negative premium seen during the “October 10 crash” last year.

The Coinbase Bitcoin Premium Index measures the difference between Bitcoin prices on Coinbase Pro and Binance. An index that remains in negative territory for an extended period indicates that the Bitcoin price on Coinbase is lower than on Binance. This typically signals weakening buying pressure or increasing selling pressure in the US market.

However, concluding that US institutional investors are exiting Bitcoin or that there is capital outflow from the country based solely on this indicator is not considered accurate. The index can also be affected by market liquidity, trading hours, investor profiles, and regional demand differences between exchanges.

*This is not investment advice.