As pointed out by an analyst in a CryptoQuant post, the interest from US investors in the asset has declined during the last couple of months. The indicator of interest here is the “Coinbase Premium Gap,” which keeps track of the difference between the Bitcoin price listed on Coinbase (USD pair) and that on Binance (USDT pair).
The Coinbase exchange is popularly known to be used by US-based investors (especially large institutions), while the Binance platform has a more global audience. Thus, the Coinbase Premium Gap can provide us with hints about the buying or selling pressure differences between these two user bases.
When the value of this indicator is positive, it means that the price listed on Coinbase is more than that on Binance. This suggests that American users are potentially participating in a higher amount of buying than global investors currently.
On the other hand, negative values of the metric suggest the US-based holders may be doing a higher amount of selling than the worldwide users (or alternatively, they are just buying less of the asset).
The Bitcoin Coinbase Premium Gap has turned slightly red recently, implying that the price on Coinbase has become lesser than on Binance.
This discount implies that the US-based institutional investors have been participating in a heavier amount of selling than the global users during the latest downward move in the cryptocurrency’s price.
Even before this shift towards the small negative values, the indicator’s value had been mostly around the neutral mark during the last few months, meaning that American investors didn’t have any interest in accumulating the asset any more than the rest of the world.
Back during the selloff in June, the US-based holders had even been applying notable selling pressure, as the metric’s value had been negative. This selloff was due to US-focused FUD from the SEC cases against Binance and Coinbase, so it makes sense that this side of the market was selling to a higher degree.
Earlier during the year, though, the US institutional investors had seemed very much interested in the asset, as they had been participating in a high amount of accumulation, which had resulted in the metric turning highly positive.
At present, however, it would appear that large American investors continue to be disinterested in Bitcoin, considering that the Premium Gap is still floating near the neutral line.
This low level of interest could translate to further downward movement for the digital asset as it struggles to hold above $29,000.
