The Coinbase Premium Gap has never been this negative since the beginning of the year.
Especially since this is a volume-weighted version, which helps reduce as much noise as possible by giving more weight to the largest volumes in the gap calculation.
When it turns negative to this extent, it means that the price of BTC on Coinbase Pro, a platform mainly used by professionals, institutions, and high-net-worth individual accounts, is lower than on Binance, a platform accessible to everyone and widely used by retail investors.
In other words, selling pressure coming from institutional players has intensified, pushing the price lower and creating a negative gap.
The current period is extremely challenging and highly uncertain, a climate that is not conducive to risk-taking and therefore to significant investments in BTC, which remains a volatile and risky asset.
Written by Darkfost