CryptoOnchain
Bitcoin’s Coinbase Premium Hits 19-Month High During Crash, Signaling Major Institutional Accumulation
On October 10th, amidst a sharp Bitcoin price correction from $123,000 to approximately $110,000, the Coinbase Premium Index surged to 0.182 — its highest level since March 2024. This significant divergence between falling prices and a rising premium provides a powerful signal of U.S.-based institutional activity. The Coinbase Premium Index, which measures the price spread between the BTC/USD pair on Coinbase and the BTC/USDT pair on Binance, serves as a barometer for U.S. buying or selling pressure. During a market-wide sell-off, this index is expected to turn negative (a discount) as U.S. investors contribute to the selling pressure. However, the spike to a 19-month high at the exact moment of the crash indicates that an incredibly strong wave of buying was underway on Coinbase. This is a textbook example of institutional “dip-buying” on a massive scale. While the global market was selling, these large entities leveraged the market panic and ensuing liquidity to accumulate Bitcoin at lower prices. This behavior, mirroring what was observed with Ethereum on the same day, points to a strong, strategic long-term conviction in flagship crypto assets among major players. It suggests the formation of a robust support floor around the $110,000 zone, fortified by institutional demand, and implies that further price weakness will likely be met with aggressive accumulation from this cohort.