U.S. Bitcoin Demand Cools as Coinbase Premium Turns Negative After 60-Day Streak
Bitcoin’s (BTC) premium on Coinbase — long viewed as a bellwether for institutional demand in the U.S. — has turned negative for the first time since May, signaling a potential shift in investor appetite.
The Coinbase premium measures the price difference between BTC/USD on Coinbase and BTC/USDT on Binance. A positive spread typically suggests strong U.S. demand, especially from institutions. On Tuesday, that premium flipped negative, according to TradingView data, ending a 60-day run that coincided with BTC’s advance toward record highs.
The reversal implies that buying interest from American investors may be waning, just as the broader market shows signs of cooling. ETF inflows have slowed significantly in recent weeks, and macro uncertainty continues to weigh on risk appetite.
Coinbase, a Nasdaq-listed exchange, is the platform of choice for many institutional players in the U.S., while Binance’s global user base leans more retail-heavy. During bullish phases, BTC tends to trade at a premium on Coinbase — a signal of capital flowing in from U.S.-based institutions. That premium now shifting negative may indicate outflows or hesitation among large buyers.
The trend also mirrors a broader pullback across crypto markets, where technicals and sentiment indicators suggest the recent rally may be losing steam.
For traders, the drop in the Coinbase premium is another signal to watch. If U.S. demand continues to fade, further consolidation or even downside pressure in BTC could follow.
