Jan Wüstenfeld
Coinbase Price Premium Trading Negative - Indicating Selling by Institutional Investors
The Coinbase Price Premium has started trading negative around May 2nd (hourly data). Institutional investors and large investors often use Coinbase Pro to buy and trade bitcoin. Following this, a negative price premium indicates that selling pressure might be coming from these types of investors. Financial markets are currently trading risk-off, so this is not surprising. I would expect investors from the traditional finance sector, in particular, to reduce exposure to bitcoin in such a situation. Yet another indication that bitcoin's price is currently primarily driven by those also active in traditional financial markets.