Coinbase Premium Index is also a good sentiment indicator.

The negative premium of Coinbase and Binance is about $100 at present, which can directly indicate the sentiment of funds in the US market and international market.

The selling pressure of funds in the US market is obviously more serious, and retail investors are more panic.

Let's look at the premium in March (Figure 3). In most cases, the price of Coinbase is more than $100 higher than the price of Binance. At the same time, the price at that time hit $73,000, and the market FOMO sentiment was very serious.

So from this point of view, Coinbase's US funds can be used as a good sentiment indicator

Positive premium, high market sentiment, easy to FOMO

Negative premium, low market sentiment, easy to cause panic