Background Insights
According to recent data, the Coinbase Bitcoin Premium Index has remained negative for 33 consecutive days, currently at -0.0477%, surpassing previous records set during the 'October 11 crash'. This indicates relatively weak demand for Bitcoin in the US market, with increasing selling pressure.
Market Analysis
The premium index measures the difference between Bitcoin prices on Coinbase and the global average. A negative reading often signals weakening market sentiment, as investors become more risk-averse and capital potentially flows to other markets.
- Negative premium has lasted for 33 days, marking the longest streak since May 2023
- Bitcoin trading activity appears to be cooling down in the US
- Rising risk-aversion could impact price trends
Investors should closely monitor market developments, assess potential risks, and adjust strategies to navigate the current environment.