Crypto: Coinbase Premium Hits Yearly Low, Hinting At Institutional Selling

Bitcoin’s Coinbase Premium Gap has fallen to a yearly low, a move analysts say may reflect weaker relative demand on Coinbase-linked venues tied to institutional trading.

The Coinbase Premium Gap, which tracks the price difference between Bitcoin on Coinbase and Binance, has fallen to its lowest level in over a year.

An analyst said the move may point to weaker relative demand on Coinbase-linked venues, which are commonly associated with institutional trading.

The Coinbase Premium is the price difference between Coinbase’s BTC/USD pair and Binance’s BTC/USDT pair.

When it turns negative to this extent, it means that the price of Bitcoin (BTC) on Coinbase Advanced Trade (formerly known as Coinbase Pro) — a platform mainly used by professionals, institutions and high-net-worth individual accounts — is lower than on Binance, a platform accessible to everyone and widely used by retail investors, CryptoQuant analyst Darkfost said on Thursday.

“The selling pressure is intensifying on the institutional side,” added Darkfost.

The Coinbase Premium Gap is currently -167.8, its lowest level since December 2024, according to CryptoQuant.

A decreasing trend indicates that “whales are continuously selling at a lower premium. In addition, it shows decreasing interest and activeness of investors in Coinbase,” it explained.

The Coinbase Premium Gap has been decreasing since the mid-October market downturn, and the decline has accelerated over the past week.

Related: Spot crypto volumes plunge to 2024 lows amid investor demand weakening

Source: CoinTelegraph