Coinbase Premium Dips to 77-Day Low as US Institutions Continue Selling
Bitcoin's price has been stuck below $63,000 since Monday, and it's not just due to market volatility. The Coinbase Premium Index, a proxy for US institutional demand, has been in negative territory for 77 days straight.
The index measures the difference between Coinbase prices and those on international exchanges. Currently, Bitcoin is trading at a discount of -0.1369% on Coinbase compared to global exchanges. This persistent discount suggests that US institutions are still selling Bitcoin, according to Markus Thielen, head of 10x Research.
Thielen stated, 'The persistent discount of Coinbase prices relative to global exchanges suggests selling pressure from US-based institutions continues to outweigh buying demand.'
This is the longest negative streak for the premium since May 19. It's worth noting that despite this decline, US Bitcoin ETFs have seen net inflows return in July, with $172.43 million pouring into these funds during the month.