Analysis: Coinbase premium drops to monthly low due to increased institutional selling pressure

According to Cointelegraph, the key indicator measuring institutional participation in the crypto market, the Coinbase premium, has fallen into a deeper negative territory, indicating increased selling pressure from institutions. This premium has mostly been negative since the end of April, accelerating its decline over the past seven days, recording a monthly low of -0.0983%. CryptoQuant analyst Darkfost stated that the selling pressure from institutions has intensified recently, suggesting that institutions and professional investors trading on Coinbase Advanced are selling more aggressively than investors on Binance.

Since May 14, the U.S. spot Bitcoin ETF has seen net outflows for four consecutive trading days, totaling $1.3 billion. Bitcoin futures and perpetual contract open interest has decreased by about $1.5 billion this week. Bitcoin has dropped 4.5% over the past week, hitting a monthly low above $76,000 on Tuesday.