Severe selling pressure on Bitcoin in the United States! Coinbase Premium Index falls to lowest level in 12 months
The Coinbase Premium Index, an important indicator of demand for Bitcoin in the retail market in the United States, has recently fallen to its lowest level in 12 months. Analysts warn that this may pose a challenge to Bitcoin's short-term price recovery.
CryptoQuant analyst Burakkesmeci pointed out in his analysis report on December 31: The increasing selling pressure in the US market has significantly affected the Coinbase Premium Index, causing the index to hit a new low.
The Coinbase Premium Index is designed to measure the demand for Bitcoin from retail investors in the United States. A rise in the index means increased buying pressure, while a negative value suggests that selling pressure is dominating the market.
According to CryptoQuant data, the index fell to a low of -0.23 on December 31, 2024. On the same day, the price of Bitcoin briefly fell to $91,479, the lowest level since November 27, 2024.
Burakkesmeci attributed the decline to "lack of market liquidity at the end of the year." The last time the index reached this level was in January 2024, when the US spot Bitcoin ETF was just launched.
In addition, the index was close to this range on the eve of the US election at the end of October 2024, when the Bitcoin price was about $68,165 and the premium index was -0.20.