Analysis: Coinbase Premium Index shows Bitcoin price may have bottomed out

According to data from CryptoQuant, Bitcoin’s premium on Coinbase has fallen to its most negative level since the FTX debacle. Such negative readings often occur at local bottoms in prices and foreshadow subsequent gains. FalconX head of research David Lawant noted that the last time the Coinbase premium was this low was a few months before the massive rally from October 2023 to March 2024. The Coinbase Premium Index, which measures the difference between Bitcoin prices on Coinbase and Binance, recently fell to -0.19. This indicates weak demand and increased selling pressure from U.S. investors, partly due to ETF outflows and government sales of seized assets through Coinbase. However, such readings often foreshadow price bottoms, such as in November 2022 when BTC prices rose more than 50% in the months after the bottom. (CoinDesk)