While the Bitcoin price has been going through an active period in recent days, the Coinbase Premium indicator turned negative for the first time in a long time. Coinbase Premium shows the difference between the Bitcoin price on the Coinbase exchange, which is mostly used by US investors, and the price received from other cryptocurrency exchanges abroad.
Buying appetite decreased in US markets
Coinbase Premium remained positive from the beginning of April until April 22, thus indicating that US institutional investors had high interest in Bitcoin. Bitcoin, which was at the level of 66 thousand dollars on April 8, climbed to almost 78 thousand dollars in this period and the Premium indicator also reached its peak. However, the data turned negative towards the end of April.
Coinbase is among the most used exchanges by US-based institutional and individual investors. Since the exchange is considered a reference point for US dollar-based transactions, Premium turning negative is interpreted as American investors selling Bitcoin at a lower price than other investors around the world or being reluctant to make new purchases.
Onchain data supports selling wave
Indicators on the chain also confirm this turnaround seen in the USA. As the Bitcoin price approached $78,000 on April 24, the 7-day Realized Loss metric reached $5.97 billion. This indicator calculates the total loss incurred when investors sell at a lower price than the initial purchase price.
In other words, the sale at a loss of approximately $ 6 billion shows that while the price of Bitcoin was $ 78 thousand, investors bought Bitcoin at higher prices than this. CryptoQuant analyst Axel Adler Jr. stated that investors who took on this tremendous loss most likely bought between $80,000 and $95,000 and saw the rise in April as an opportunity to close their positions.
According to Adler Jr., these investors considered the jump in April as an exit door, not for repurchase, and disposed of their Bitcoins, albeit at a loss.
Is seller pressure easing?
Two important indicators revealed that while US institutional investors lost buying momentum on Coinbase, the selling pressure in the market increased. Bitcoin price was last around 76 thousand dollars.
One of the main developments that market participants will monitor in the future is whether the Incurred Loss indicator will continue to decline. As a matter of fact, after the record level on April 24, this value decreased to 4.7 billion dollars on April 28, signaling a decrease in the seller group.
