Bitcoin Coinbase Premium Gap Enters Deep Red Zone | Crypto News
The price of Bitcoin closed the traditionally bullish month of October on a loss for the first time in seven years. While the month began in typical fashion—on a bullish tear, the extreme downturn didn’t start until October 10, when US President Donald Trump threatened new commerce tariffs on China.
Now, although the United States and China appear to have discovered a short-term truce, the cryptocurrency market has been unable to discover related aid. In fact, the latest on-chain data suggests that US traders are still less optimistic about the digital asset market, particularly Bitcoin.
Negative 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 extraordinarily low demand in the United States in latest days. The related indicator right here is the Coinbase Premium Gap, which has entered a deep crimson territory in the past few days.
This on-chain metric measures the distinction between the Bitcoin price on the US-based Coinbase exchange (USD pair) and the global Binance exchange (USDT pair). A optimistic distinction signifies that the flagship cryptocurrency has a larger worth on Coinbase than on Binance.
When the Coinbase Premium Gap is optimistic, it implies that US-based traders are buying Bitcoin aggressively. On the flip facet, a unfavorable Coinbase Premium Gap sometimes signifies heavy promoting stress for the market chief.
According to data highlighted by Maartunn, this on-chain metric is back around -$80, reflecting vital promoting stress from the US institutional gamers. This lowered demand could be seen with the disappointing efficiency of the US-based spot Bitcoin exchange-traded funds (ETFs) in latest days.
Data from SoSoValue exhibits the Bitcoin ETFs registered a whole internet outflow of more than $191 million on Friday. This marked the third consecutive day of unfavorable outflows, having seen withdrawals of almost $500 million each on Wednesday and Thursday.
From a historic perspective, a unfavorable Coinbase Premium Gap is often correlated with durations of sluggish or downward motion for the BTC price. Hence, with the current intense promoting stress from large US traders, it’s tough to see the premier cryptocurrency making a strong recovery in the approaching days.
Bitcoin Price At A Glance
As of this writing, the price of BTC sits just above $110,200, reflecting a measly 0.9% bounce in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down precisely 1% in the last seven days.
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