Bitcoin's price premium on Coinbase has plummeted to negative levels rarely seen, CryptoQuant data showed.is trading at a deep discount on crypto exchange Coinbase, which could be a sign that the largest crypto asset's price is bottoming foreshadowing the next leg higher.."The last time the Coinbase premium was this negative was a couple of months before the massive rally from Oct '23 to March '24," he added.
The metric has been negative for an extended period during June and most of May, echoing last year's market lull in August and September, according to data from analytics firm CryptoQuant. On Friday, it slid to nearly -0.19, its lowest reading on the daily timeframe since the November 2022 collapse of crypto exchange FTX.
However, such a deeply negative Coinbase Premium previously appeared near to local bottoms in price, followed by significant rallies in the coming months. The August 2023 low in the premium occurred a couple weeks before bitcoin hit a local bottom around $25,000. Then, BTC traded range-bound until October to almost double in price by January driven by anticipation for the upcoming U.S. bitcoin ETFs, and later to new all-time highs.