Viewpoint: The disappearance of Bitcoin premium on Coinbase may indicate a slowdown in US institutional buying

According to BlockBeats, on July 29th, CoinDesk reported that the "premium" of Bitcoin trading on Coinbase has tended to disappear. This excess value is often seen as an indicator of strong demand from American investors, especially institutional investors. As a cryptocurrency trading platform listed on NASDAQ, Coinbase has a wide user base in the United States, especially favored by large institutions; In contrast, Binance has more retail users worldwide. In the past few bull markets, the premium phenomenon of Bitcoin on Coinbase has been evident, which has been interpreted as a signal of increased buying pressure from mature traders and institutions in the United States. The current decline in premiums may reflect a decrease in the activity of such funds. The emergence of negative premiums indicates that the relative demand of American investors has weakened again, which further supports the judgment that Bitcoin prices may experience a longer period of correction. Note: The Coinbase Bitcoin Premium Index measures the percentage price difference of Bitcoin between Coinbase Pro (USD trading pair) and Binance (USDT trading pair).