According to data from CryptoQuant, Bitcoin’s premium on Coinbase has fallen to its most negative level since the FTX debacle. David Lawant of FalconX noted that such negative readings often occur at local bottoms in price and foreshadow subsequent gains.

The Coinbase Premium Index, which measures the difference in Bitcoin prices on Coinbase and Binance, recently fell to -0.19. This indicates weak demand and increased selling pressure from U.S. investors, driven in part by ETF outflows and government sales of seized assets through Coinbase. However, such readings often foreshadow price bottoms, such as in November 2022 when BTC prices rose more than 50% in the months following the bottom. #BTC☀