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Benzinga
Benzinga
Business
Samyuktha Sriram

Coinbase Premium Turns Negative: What This Means For Bitcoin

Institutional investors are likely looking to de-risk from Bitcoin (CRYPTO: BTC) as the premium on Coinbase Global Inc (NASDAQ:COIN) turns negative.

What Happened: According to CryptoQuant, hourly data shows that the Coinbase Price premium indicator flipped negative on May 2.

Why It Matters: “Institutional investors and large investors often use Coinbase Pro to buy and trade Bitcoin. Following this, a negative price premium indicates that selling pressure might be coming from these types of investors,” CryptoQuant author Jan Wüstenfeld wrote.

Data also shows that more than 46.8% of Bitcoin’s supply is at a loss at these levels and unspent transaction outputs UTXO’s in a loss hit a two-year high.

Long-term investors typically accumulate at these levels, whereas short-term investors would want to exit their positions.

Price Action: According to data from Benzinga Pro, BTC was trading at $31,800 at the time of writing, down 5.7% over 24 hours and 17% over seven days.

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