Coinbase Premium Registers 12-Month Record Low
The Coinbase Premium, a measure of the difference between Bitcoin prices on Coinbase and other global exchanges, has declined to -0.237 by early 2025. This negative premium indicates sluggish buying interest from U.S. investors, particularly retail and institutional players.
The decline is mainly driven by a shift in investor demand dynamics, with a movement away from retail buying towards more institutional trading. Coinbase has underperformed relative to other exchanges, reflecting this trend.
Another contributing factor is the 7% retracement of Bitcoin from its all-time high of around $123,000 in July 2025. This price drop has led to a technical correction phase, with bearish indicators emerging.
Broader market and macroeconomic factors, such as ongoing macroeconomic uncertainty and technical market signals, have also played a role. These factors have triggered liquidation events and cautious sentiment among investors.
Reduced speculative buying, as indicated by lower search interest and buying activity on Coinbase, further points to waning enthusiasm among U.S. investors despite record-high prices.
Regarding the implications for Bitcoin's short-term price recovery, the negative Coinbase Premium suggests that without renewed buying pressure—particularly from U.S. investors—it is difficult for Bitcoin to sustain or accelerate price gains. This scenario increases the likelihood of continued price consolidation or modest pullbacks in the near term.
However, analysts remain cautiously optimistic about Bitcoin’s longer-term bullish structure. The current negative premium and correction phase are viewed as part of an essential price discovery process, where supply and demand balance to establish a fair market value before potential further upward moves—possibly targeting prices as high as $150,000 or more later in 2025.
In summary, the negative Coinbase Premium signals a temporary pullback and the need for renewed U.S. demand for Bitcoin’s next price recovery phase in the coming weeks or months. CryptoQuant analyst Burak Keshmechi made these observations, noting that improved macroeconomic conditions and renewed institutional activity are needed for the market to regain momentum.
At the time of writing, Bitcoin is trading near $96,760, up 3.5% over the last 24 hours, according to CoinGecko. The decline in the Coinbase Premium is attributed to the recent correction in Bitcoin's price to $91,500, as well as low market liquidity and growing selling pressure.
Note: This article is based on observations made by CryptoQuant analyst Burak Keshmechi in relation to the Coinbase Premium and Bitcoin's price.
- The sluggish buying interest from U.S. investors, as demonstrated by the decline in retail and institutional buying on Coinbase, has led to a shift in demand dynamics, favoring institutional trading over retail investments in the Bitcoin finance market.
- The negative Coinbase Premium, a reflection of the decreased buying pressure from U.S. investors, suggests that technology-driven investing in Bitcoin may face challenges in sustaining or accelerating price gains without renewed demand, potentially leading to continued consolidation or modest pullbacks in the near term.
