ChainCatcher reported, citing Coinglass data, that the Coinbase Bitcoin Premium Index has turned negative again after briefly returning to positive territory on Monday. The index is currently reported at -0.103%, indicating that the price of Bitcoin on Coinbase is below the average price seen across the broader global market.
The Coinbase Bitcoin Premium Index is used to measure the difference between the Bitcoin price on Coinbase and the global market average. When the premium is negative, it typically reflects weaker buying power in the U.S. market and relatively heavier selling pressure compared with the wider market.
According to the data interpretation cited in the report, a negative premium usually points to greater sell pressure in the U.S. market, a decline in investor risk appetite, stronger demand for risk avoidance, or capital outflows. The latest move from a brief positive reading on Monday to -0.103% places the focus on continued weakness in U.S. market demand.