Coinbase Bitcoin Premium Index Stuck in Negative Territory for 40 Days

The Coinbase Bitcoin Premium Index has been stuck in negative territory for over 40 days, suggesting continued institutional selling pressure. On-chain data shows that Bitcoin demand remains weak, having stayed below zero for a staggering 208 consecutive days.

This trend is particularly concerning as it indicates that larger market players are selling more than they're buying. The Coinbase Premium Index compares the price of Bitcoin on Coinbase Advanced to its counterpart on Binance, and when the reading stays below zero, it signals that professional investors are dominating the market with their sales.

Economic data has also been painting a bleak picture for Bitcoin. Recent reports show that inflation remains stubbornly high, which could lead to further interest rate hikes. Strong GDP growth and higher-than-expected PCE readings have reduced the chances of an interest rate cut in the near term, leaving investors cautious about buying assets like Bitcoin.

CryptoQuant founder Ki Young Ju is skeptical about calling a market bottom just yet. He points out that previous cycles saw Bitcoin move close to its realized price before forming a lasting bottom. As long as this hasn't happened in the current cycle, he believes it's too early to say that Bitcoin has reached its lowest point.