Data: Coinbase premium approaches year-to-date low, signs of institutional fund withdrawal emerge

According to CryptoQuant data, the Coinbase premium indicator has plummeted to -90 USD, marking one of the lowest levels this year. The last time such a strong negative premium was observed was in February 2025, when the indicator fell to -138 USD, coinciding with a period of significant withdrawals by institutional investors.

This indicator reveals the market's dominant forces by comparing the Bitcoin spot prices on Coinbase Pro (which primarily serves institutions and large holders) with those on Binance (dominated by retail investors). In a healthy bull market, the premium is usually positive, indicating active buying by institutions; however, the current deep negative premium of -90 USD suggests that price movements are primarily driven by retail investors on Binance, while professional investors choose to hedge, reduce positions, or remain on the sidelines.

A sustained negative premium indicates that the market is dominated by emotional investors, who react quickly to volatility and panic, potentially exacerbating selling pressure and leading to more severe corrections until institutions re-enter the market.