Coinbase Premium Index Suggests Bitcoin Price Could Be Near Or Already Bottomed

Previous deeply negative readings occurred near local lows in price, with the most recent occurring just before BTC's October-March rally to all-time highs, noted FalconX's David Lawant.

Bitcoin (BTC) is trading at a deep discount on cryptocurrency exchange Coinbase, which could be a sign that the price of the largest crypto asset is bottoming out, heralding the next bull leg.

“It's always darkest before the dawn,” asked David Lawant, head of research at institutional cryptocurrency trading platform FalconX, in an X post. “The last time Coinbase's premium was this negative was a couple of months ago.” before the massive rally from October 2023 to March 2024," he added.

The so-called "Coinbase Premium Index" measures the price difference of bitcoin on Coinbase, widely used by US users and many institutional market participants, compared to the offshore Binance, the main exchange by trading volume and popular among users retailers.

The metric has been negative for an extended period through June and most of May, reminiscent of last year's market calm in August and September, according to data from analytics firm CryptoQuant. On Friday, it fell to almost -0.19, its lowest reading on the daily time frame since the collapse of cryptocurrency exchange FTX in November 2022.

#BTC☀ #bitcoin☀️ #Bitcoin❗ #HotTrens #BullRunAhead $BTC