On October 25, 2024, just before the U.S. elections, the Coinbase Premium Index dropped to -0.200 due to heightened uncertainty. However, as of the last day of the year, the metric has fallen even further, reaching -0.237, marking its lowest point in the past 12 months.
Conclusion
As Bitcoin dropped to $91,500 amidst a low-liquidity market at year-end, the increasing seller pressure in the U.S. market has significantly impacted the Coinbase Premium Index, dragging it to new lows.
This drop not only signals a lack of institutional demand but also underscores the cautious sentiment among U.S. investors. Such trends can create a challenging environment for Bitcoin's short-term price recovery unless we see a shift in macroeconomic conditions or renewed interest from institutional or retail buyers.
Written by burakkesmeci
