Where Is the Bottom? Coinbase Bitcoin Premium Hits 21-Day Negative Streak

The Coinbase Bitcoin Premium Index has registered a negative reading for 21 consecutive days, the longest streak in the current cycle, coinciding with Bitcoin's price drop from near $120,000 to around $84,000. This negative premium indicates ongoing selling pressure on US-based exchanges, reflecting subdued US institutional investor sentiment compared to global markets trading on Binance (USDT).

Analysts suggest that the market will not find a sustainable bottom until this negative trend reverses, as aggressive institutional selling on Coinbase is overpowering global buyers. Data from CryptoQuant supports this, showing subdued institutional sentiment. Furthermore, rising open interest alongside falling prices suggests growing short positions.

However, some observers note that weekends often cause mean reversion, pushing the premium closer to zero as US institutional activity pauses, leading to brief price stability. Despite these temporary weekend upticks, the dominant weekday trend remains negative, suggesting that until the premium returns to neutral or positive territory, indicating an end to institutional selling, Bitcoin faces continued downside risk.

(Source：BeInCrypto)