Bitcoin Coinbase Premium Gap Enters Deep Red Zone — Impact On Price?

The price of Bitcoin closed the historically bullish month of October on a loss for the first time in seven ￰0￱ the month started in typical fashion—on a bullish tear, the intense downturn didn’t begin until October 10, when US President Donald Trump threatened new trade tariffs on China. Now, although the United States and China seem to have found a temporary truce, the cryptocurrency market has been unable to find similar ￰1￱ fact, the latest on-chain data suggests that US investors are still less optimistic about the digital asset market, specifically ￰2￱ Coinbase Gap Premium Coincides With Massive ETF Outflows In a November 1st post on social media platform X, crypto analyst Maartunn revealed that the world’s largest cryptocurrency has seen extremely low demand in the United States in recent ￰3￱ relevant indicator here is the Coinbase Premium Gap, which has entered a deep red territory in the past few ￰4￱ Reading: Bitmine Buys 44,036 Ethereum Worth $166M During Market Dip – Details This on-chain metric measures the difference between the Bitcoin price on the US-based Coinbase exchange (USD pair) and the global Binance exchange (USDT pair).

A positive difference indicates that the flagship cryptocurrency has a higher value on Coinbase than on ￰5￱ the Coinbase Premium Gap is positive, it implies that US-based investors are purchasing Bitcoin ￰6￱ the flip side, a negative Coinbase Premium Gap typically indicates heavy selling pressure for the market ￰7￱ to data highlighted by Maartunn, this on-chain metric is back around -$80, reflecting significant selling pressure from the US institutional ￰8￱ reduced demand can be seen with the disappointing performance of the US-based spot Bitcoin exchange-traded funds (ETFs) in recent ￰9￱ from SoSoValue shows the Bitcoin ETFs registered a total net outflow of more than $191 million on ￰10￱ marked the third consecutive day of negative outflows, having seen withdrawals of nearly $500 million each on Wednesday and ￰11￱ a historical perspective, a negative Coinbase Premium Gap is often correlated with periods of sluggish or downward movement for the BTC price.

Hence, with the current intense selling pressure from large US investors, it is difficult to see the premier cryptocurrency making a strong recovery in the coming ￰12￱ Price At A Glance As of this writing, the price of BTC sits just above $110,200, reflecting a measly 0.9% jump in the past 24 ￰13￱ to data from CoinGecko, the flagship cryptocurrency is down exactly 1% in the last seven ￰14￱ Reading: Dogecoin Plunges To $0.18 As Whales Sell 440 Million DOGE Featured image by Dall-E, chart from TradingView