Analysis: The disappearance of Bitcoin premium on Coinbase may indicate a slowdown in institutional buying in the U.S

ChainCatcher news, according to CoinDesk, the Bitcoin premium index on Coinbase has recently approached zero, even showing negative premiums, which may reflect a weakening buying power from U.S. institutional investors. As a trading platform listed on Nasdaq, Coinbase has a large number of domestic U.S. users, particularly favored by institutions; while Binance primarily serves global retail users.

Historically, during Bitcoin bull markets, premiums often appeared on Coinbase, seen as an important signal of mature U.S. capital driving the market. The current decline in premiums may indicate a decrease in the activity of such capital, further supporting the judgment that Bitcoin is entering a correction or consolidation phase.

It is reported that the Coinbase Bitcoin premium index is used to measure the price difference between BTC on Coinbase Pro (USD trading pair) and Binance (USDT trading pair). (CoinDesk)