Bitcoin slips to $62K as Coinbase premium hits 77th day
Bitcoin fell to about $62,000 as the Coinbase Premium Index logged its 77th straight day in negative territory, with a latest premium of -0.1369%.
Bitcoin slipped to about $62,000 on Monday as the Coinbase Premium Index recorded its 77th consecutive day below zero, with a latest premium reading of -0.1369%, according to market-data trackers.
The Coinbase Premium Index measures the price gap between Coinbase and international exchanges and is used as a proxy for US institutional demand. Coinbase has traded at a discount to overseas venues since May 19.
The current run is the longest negative streak on record for the index. The drop in the premium coincided with Monday’s decline in Bitcoin’s price to roughly $62,000.
US-listed Bitcoin exchange-traded funds returned to monthly net inflows in July, drawing about $172.4 million for the month and reversing heavy outflows in June, data aggregators show.
The Coinbase discount persisted even as ETFs recorded July inflows, with the discount remaining on the US exchange while other venues showed higher prices.
Markus Thielen, head of 10x Research, described the negative premium as evidence of continued liquidations by US institutions: ‘The persistent discount of Coinbase prices relative to global exchanges suggests selling pressure from US-based institutions continues to outweigh buying demand.’
Earlier this year the premium ran negative for 40 days from Jan. 16 to Feb. 24, a period when Bitcoin fell below $65,000 from highs near $95,000.
Market participants will monitor whether inflows to US-listed ETFs continue and whether the Coinbase discount narrows, which could affect the price gap between US and overseas trading venues.
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