Coinbase premium falls to annual low, suggesting institutional sell-off

The Coinbase premium gap for Bitcoin has dropped to its lowest point of the year, with analysts suggesting that this move may reflect weak relative demand for the Coinbase exchange associated with institutional trading.

The Coinbase Premium Gap (which measures the price difference of Bitcoin on Coinbase and Binance) has fallen to its lowest level in over a year. One analyst stated that this move may indicate a weakening of relative demand for exchanges associated with Coinbase, which is often linked to institutional trading.

This Coinbase Premium is the price difference between Coinbase's BTC/USD trading pair and Binance's BTC/USDT trading pair. When the negative value reaches this level, it indicates that the price of Bitcoin is declining.