Coinbase premium hits yearly low, hinting at institutional selling
The price difference between Bitcoin on Coinbase and Binance has dropped to its lowest level since December 2024.
The Coinbase Premium Gap, a metric used to estimate demand for Bitcoin from institutional investors relative to retail investors, has fallen to its lowest level in over a year — signaling a potential sell-off by professional investors, according to an analyst.
The Coinbase Premium is the price difference between Coinbase’s BTC/USD pair and Binance’s BTC/USDT pair.
When it turns negative to this extent, it means that the price of Bitcoin (BTC) on Coinbase Advanced Trade (formerly known as Coinbase Pro) — a platform mainly used by professionals, institutions and high-net-worth individual accounts — is lower than on Binance, a platform accessible to everyone and widely used by retail investors, CryptoQuant analyst Darkfost said on Thursday.