Bitcoin Demand Wavers as Coinbase’s 60-Day BTC Premium Run Faces Breakdown

Coinbase BTC Premium Turns Negative, Signaling Weakening U.S. Demand

Bitcoin’s (BTC) long-standing premium on Coinbase — a key gauge of U.S. institutional demand — has flipped negative for the first time in over two months, suggesting a potential shift in market sentiment.

The Coinbase Premium Index tracks the price spread between BTC/USD on Coinbase and BTC/USDT on Binance. A positive reading typically reflects stronger buying interest from U.S.-based investors, particularly institutions. On Tuesday, that premium turned negative for the first time since late May, according to TradingView, pointing to a decline in relative demand from the U.S.

This shift comes after a 60-day streak of positive premium readings, a period that coincided with BTC’s push toward all-time highs. The negative turn may signal reduced institutional appetite or growing caution among sophisticated U.S. buyers amid broader market uncertainty.

Coinbase, being a U.S.-regulated exchange favored by institutional players, often sees BTC trade at a higher price than global platforms like Binance. The loss of that premium suggests capital outflows or hesitation among American investors — a potential headwind for Bitcoin if the trend persists.

The premium reversal adds to a growing list of warning signs for BTC, including cooling ETF inflows and declining momentum indicators. If U.S. demand continues to weaken, analysts warn, Bitcoin may face further consolidation or downside pressure in the near term.