Analysis: Coinbase Premium Index shows Bitcoin price may have bottomed out

Odaily Odaily News According to CryptoQuant data, Bitcoin's premium on Coinbase has fallen to the lowest negative level since the FTX crash. Such negative readings usually appear at local bottoms in prices and foreshadow subsequent rises. David Lawant, head of research at FalconX, pointed out that the last time the Coinbase premium was so low was a few months before the massive rebound from October 2023 to March 2024. The Coinbase Premium Index, which measures the difference in Bitcoin prices between Coinbase and Binance, recently fell to -0.19. This indicates weak demand and increased selling pressure from U.S. investors, partly due to ETF outflows and the government's sale of confiscated assets through Coinbase. However, such readings usually indicate that prices have bottomed out, such as in November 2022, when BTC prices rose by more than 50% in the months after bottoming out. (CoinDesk)