The selling pressure of Bitcoin in the United States is severe! The Coinbase premium index has fallen to its lowest level in 12 months.
An important indicator of demand in the U.S. Bitcoin retail market—the Coinbase premium index—recently dropped to its lowest level in 12 months. Analysts warn that this could pose a challenge to the short-term price recovery of Bitcoin.
CryptoQuant analyst Burakkesmeci noted in an analysis report on December 31 that the increasing selling pressure in the U.S. market significantly impacted the Coinbase premium index, causing the metric to hit a new low.
The Coinbase premium index is designed to measure the demand for Bitcoin among U.S. retail investors. An increase in this index indicates rising buying pressure, while a negative value suggests that selling pressure is dominating the market.
According to data from CryptoQuant, the index fell to a low of -0.23 on December 31, 2024. On the same day, the price of Bitcoin briefly dropped to $91,479, the lowest level since November 27, 2024.
Burakkesmeci attributed this decline to "insufficient market liquidity at the end of the year." The last time the index reached this level was in January 2024, shortly after the launch of the U.S. spot Bitcoin ETF.
Additionally, the index was close to this range again at the end of October 2024, just before the U.S. election, when the price of Bitcoin was around $68,165 and the premium index was -0.20.