The price gap between Bitcoin traded on Coinbase and Binance has dropped to its lowest level in more than a year, raising concerns that institutional investors are increasing their selling activity as market conditions worsen.
Coinbase Premium Turns Deeply Negative
The Coinbase Premium Gap, which tracks the price difference between BTC/USD on Coinbase and BTC/USDT on Binance, has fallen to around -168, its weakest level since December 2024. A deeply negative premium means Bitcoin is trading cheaper on Coinbase, a platform favored by institutions and high-net-worth investors, than on Binance, which is dominated by retail traders. This imbalance suggests heavier sell-side pressure coming from professional market participants.
Sustained Downtrend Signals Weak Institutional Demand
The premium has been trending lower since the market downturn in mid-October, with the decline accelerating over the past week. A persistent decrease typically reflects continuous selling by large holders and reduced trading activity from Coinbase-based investors. Analysts note that such conditions often emerge during periods of heightened uncertainty, when risk appetite fades and capital preservation becomes the priority.
ETF Outflows Add to Selling Pressure
Institutional weakness is also visible in the behavior of spot Bitcoin exchange-traded funds. After strong accumulation last year, these funds have shifted to net selling in 2026, offloading more than 10,000 BTC so far. Combined with recent outflows totaling over $1 billion in a single week, ETF activity has added to downside pressure.
With Bitcoin trading near fifteen-month lows, the negative Coinbase Premium reinforces the view that institutional demand remains subdued for now.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.