Coinbase Bitcoin Premium Remains Negative for a Week Amid Weak U.S. Demand

Negative Coinbase Premium: The Coinbase Bitcoin premium has been negative for seven days, indicating weaker U.S. spot demand as prices trade at a discount compared to global averages.

Year-End Selling Pressure: U.S. traders are engaging in portfolio rebalancing, profit-taking, and tax-loss harvesting, contributing to the negative premium, while Asian traders are buying Bitcoin on dips.

Historical Patterns: Similar U.S. selling and Asian buying patterns have been observed in previous years, such as 2019 and 2020, often leading to price increases after Western selling pressure subsides.

Market Sentiment Indicator: The negative Coinbase premium reflects reduced institutional buying activity in the U.S. and serves as a sentiment indicator for demand across different regions, with a positive premium indicating strong buying pressure.