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The Coinbase Bitcoin premium index, a key indicator of investor demand in the Bitcoin market based in the US, extended its negative trend for the fifth day. According to CoinGlass data, the index was down 0.042% as of 03:00 on September 11.
The Coinbase premium index measures the difference between Bitcoin prices on the Coinbase and Binance exchanges. A positive index indicates that the Bitcoin price on Coinbase is higher than on Binance and that there is relatively strong buying demand in the US market. Long-term negative values, on the other hand, are interpreted as indicating weaker Bitcoin demand originating from the US compared to other markets.
The index had risen to 0.0052 percent on August 24, entering positive territory for the first time since May 19. This move marked the end of the index’s longest negative streak to date, a period of 97 days.
However, the indicator turning negative again after this recovery has led to assessments that there may be a short-term weakening in the appetite of US investors to buy Bitcoin. The five-day negative trend is noteworthy, especially at a time when the impact of demand in the US market on Bitcoin price movements is being monitored.
The Coinbase premium stands out as one of the on-chain and market indicators that investors follow to assess regional demand dynamics. While the index alone doesn’t determine price direction, its long-term movements are important for tracking changes in US-based investors’ interest in Bitcoin.
*This is not investment advice.
Source: cryptonews.net