After a historic 60 days, Bitcoin (BTC) premium to Coinbase, a key indicator of strong U.S. investor demand, is dissipating, indicating a significant shift in market dynamics.
According to data from the data source transaction view, BTC's Coinbase Premium represents the percentage difference between BTC/USD pairs on Coinbase and BTC/USDT pairs on Binance, the first instance of such a type since late May.
The negative flip shows that demand from U.S. investors is relatively new, supporting a pullback in BTC price extension.
The Coinbase Bitcoin Premium Index is a measure of percentage differences between the price of a Coinbase Pro (USD pair).
Positive value is widely seen as an indicator of strong demand for U.S. investors, especially institutions. Nasdaq-listed cryptocurrency exchanges are popular among U.S. investors, especially large institutions, while Binance has a larger user base worldwide.
The recent Bull Run iconic trading with Bitcoin, trading at high prices at Coinbase, reflects the greater buying pressures for mature U.S. U.S. traders and institutions.