The Coinbase Bitcoin Premium Index has been down for nine consecutive days, currently at -0.1399%, indicating increased selling pressure and risk aversion in the US market.
Coinglass data indicates that this index has only been positive for two days in January, reflecting the price difference between Bitcoin on Coinbase and the global Medium price, which is skewed towards the lower end of the US exchange.
- The Coinbase Bitcoin Premium Index is down for 9 days, currently at -0.1399%.
- Since January, there have only been 2 positive days.
- Negative premiums are typically associated with selling pressure, reduced risk appetite, and Capital outflows from the US.
What does the Coinbase Bitcoin Premium Index say about supply and demand in the US?
The index is consistently negative, meaning the price of Bitcoin on Coinbase is lower than the global Medium price.
According to Coinglass, the Coinbase Bitcoin Premium Index has been in negative territory for 9 consecutive days and currently stands at -0.1399%. In January, the index only recorded 2 positive days, indicating that the remaining trading sessions were mostly at a discount to the overall market.
The Coinbase Bitcoin Premium Index measures the difference between the price of Bitcoin on Coinbase (a major US exchange) and the global Medium price. When the premium is negative, the market typically interprets it as either stronger selling pressure in the US compared to the rest of the world, or weaker buying demand on Coinbase in the short term.
Market implications: selling pressure, risk aversion, and potential Capital outflow.
Negative premiums are often XEM as a signal of decreased risk sentiment and increased selling pressure in the US market.
The original text states that negative premiums can reflect: significant selling pressure in the US, decreased investor risk appetite, increased risk aversion, or Capital outflow. The fact that the index has remained negative for 9 consecutive days reinforces the view that buying pressure on Coinbase is not yet sufficient to push prices above the global average at this time.
