Coinbase's Premium Index Gains ground first time in 2025, market still cautious
The Coinbase Premium Index, a key gauge of U.S. investor sentiment, crossed above zero in 2025, coinciding with Bitcoin's price surpassing $102,000 on Jan. 7.
The Coinbase Premium Index measures how much more or less Bitcoin BTC -4.67% is trading on Coinbase compared with other major exchanges. The recent CPI shift indicates increasing demand for BTC among U.S. traders and institutions, signaling a notable change in market dynamics.
A positive CPI suggests BTC is trading at a premium on Coinbase, reflecting strong buying interest from U.S. investors, particularly institutions and ETF participants. In contrast, a negative CPI typically signals selling pressure or reduced demand in the U.S. market. As Coinbase is one of the most popular trading platforms in the U.S., its pricing trends are often considered a leading indicator for global market sentiment.
