On June 2, data from Coinglass showed the Coinbase Bitcoin negative premium index rapidly expanded, hitting -0.1323%. This ended a period of mild moderation from February to May and marked a further weakening trend that began on May 8. The reading signals that US market buying power has once again fallen into sustained sluggishness.
The Coinbase Bitcoin premium index tracks the deviation between Bitcoin's price on Coinbase (in USD) and the average global market price. A negative premium typically reflects heavier selling pressure in the US market, declining risk appetite among investors, or capital outflows. The swift widening of the negative premium contrasts with the earlier tentative improvement, highlighting the exhaustion of domestic demand.
Given Coinbase's status as a key compliant exchange in the US, fluctuations in this premium index often serve as a barometer for Bitcoin's short-term supply-demand dynamics and broader market sentiment in the American crypto space.