Cryptocurrency analysis firm Alphractal has released some noteworthy data regarding the Bitcoin market. According to the company, the Coinbase Premium Index is currently in the negative.
This index measures the difference between Bitcoin’s price on US-based exchanges like Coinbase and its price on other global exchanges. A negative index means Bitcoin is trading at a discount on Coinbase, meaning it’s lower. This could indicate selling pressure or waning interest among US-based investors.
Alphractal notes that historically, negative premiums often coincide with periods when US investors are taking profits or market interest is waning. The analyst firm warned investors that such data could impact the market in the short term: “Be careful, as this could impact the market in the short term.”
Coinbase is known as a popular cryptocurrency exchange among US investors, especially large institutions, but Binance has a larger global user base.
*This is not investment advice.