CoinVoice has recently learned that CryptoQuant analyst Burakkesmeci stated: "On October 25, 2024, just before the U.S. election, 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 declines 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 down to a new low.
This decline not only indicates insufficient institutional demand but also highlights the cautious sentiment among American investors. Unless we see a change in macroeconomic conditions or renewed interest from institutional or retail buyers, this trend may create a challenging environment for Bitcoin's short-term price recovery.
