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

According to CryptoQuant, Bitcoin's premium on Coinbase has fallen to its most negative level since the FTX crash. David Lawant of FalconX noted that such negative readings often occur at local bottoms in price and foreshadow subsequent gains. The Coinbase Premium Index, which measures the difference between Bitcoin prices on 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 selling confiscated assets through Coinbase. However, such readings often foreshadow price bottoms, such as the November 2022 BTC price rally of more than 50% in the months following the bottom.