According to ChainCatcher news, CryptoQuant analyst Burakkesmeci stated: "On October 25, 2024, just before the U.S. elections, the Coinbase premium index fell to -0.200 due to increased uncertainty. However, by the last day of last year, the index further declined to -0.237, marking the lowest point in the past 12 months.
As Bitcoin falls in a low liquidity market at the end of the year, the increasing selling pressure in the U.S. market has significantly impacted the Coinbase premium index, dragging it to a new low.
This decline not only indicates a lack of institutional demand but also highlights the cautious sentiment among U.S. investors. Unless we see changes in macroeconomic conditions or renewed interest from institutional or retail buyers, this trend could create a challenging environment for a short-term price recovery for Bitcoin."
