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Bitcoin has been in the red for four straight weeks. Bitcoin extended its drop from late October, reaching a low of $88,483 this week, to print four red weekly candles. The drop has caused a loss of crucial weekly support, the weekly MA 50 at $102,749.
As a result, the Coinbase Premium Gap dropped as low as -$90, according to CryptoQuant, a sign of strong selling pressure in the U.S.
According to CryptoQuant, selling continues to dominate in the American session. Cumulative trading returns during U.S. hours are negative for the entire month, while Europe and APAC remain flat or slightly positive.
This has resulted in ETF flows turning net negative for three consecutive weeks as outflows continue to weigh on the BTC spot market. Investors pulled more than half a billion dollars from BlackRock's iShares Bitcoin Trust, the largest single-day outflow since the fund’s debut. BlackRock saw $523 million in outflows from the exchange-traded fund on Tuesday, marking the fifth straight day of net outflows and its highest on record.
Bitcoin ETFs are now down $3.98 billion from their all-time high, which is the second-largest drawdown since launch, as the BTC ETF realized price sits at $86,586.
What it means
The Coinbase Bitcoin Premium Index measures the price difference between Bitcoin traded on top US exchange Coinbase and the global market average. The Coinbase Bitcoin premium is an indicator which often reflects capital flows, institutional activity, and market sentiment.
A Negative Premium, in this case a drop below 0, suggests that Bitcoin is now going for less on the Coinbase exchange. A negative premium is indicative of selling pressure in the market (especially in the U.S) as investor risk appetite declines.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team