Bitcoin investors on Coinbase have intensified selling activity to levels not seen since February, raising alarms about institutional demand in the United States. CryptoQuant analyst Maartunn reported that the Coinbase Premium Gap – the price difference between Bitcoin on Coinbase and other major exchanges – dropped significantly below zero, indicating stronger sell-side pressure from American investors.
The negative premium widened while Bitcoin struggled near key resistance levels, a pattern reminiscent of the market weakness earlier this year. Data shows that Coinbase had maintained positive premium readings through March and April, reflecting robust buying demand, but sentiment has since reversed sharply.
Adding to the caution, CryptoQuant's XWIN Research Japan analyst noted that Bitcoin’s trajectory now depends not just on interest rate cuts but on a broader shift in Federal Reserve philosophy. With Kevin Warsh as the new Fed chair, markets are bracing for a move from a market-saving stance to one of monetary discipline. This tighter policy outlook could weaken Bitcoin demand, first visible in a negative Coinbase Premium. The analyst also highlighted exchange net flows: rising deposits may signal selling by short-term holders, though a rebound in spot Bitcoin ETF inflows could offset some pressure and keep the asset range-bound.
