Odaily Planet Daily reports that the Bitcoin premium index on Coinbase has recently approached zero, even showing a negative premium, potentially reflecting weakening buying from US institutional investors. As a Nasdaq-listed trading platform, Coinbase has a large US user base, particularly among institutions; Binance, on the other hand, primarily caters to global retail investors.

Historically, premiums have often appeared on Coinbase during Bitcoin bull markets, a phenomenon seen as a key signal of market momentum driven by mature US funds. The current fading of premiums may indicate a decline in the activity of such funds, further supporting the view that Bitcoin is entering a period of correction or consolidation.

Note: The Coinbase Bitcoin Premium Index measures the price difference between BTC on Coinbase Pro (USD trading pairs) and Binance (USDT trading pairs). (CoinDesk)