CoinGlass data show that Coinbase Premium Index, which measures the difference between Coinbase and Binance bitcoin prices, has been below zero for 90 consecutive days, from 19 May to 16 August, to update the record of the maximum negative value for the previous 40 days.
This indicator reflects a premium or discount on the price of Bitcoin at Coinbase relative to Binance. The value is negative, meaning that Coinbase's bitcoin price is lower than Binance. The market usually sees this phenomenon as one of the signs of weak buy-in at United States trading times.
90-day negatives to refresh the record.
The historical data given by CoinGlass show that the longest continuous negative values were in 40 days between 16 January and 24 February. This more than doubling of the duration indicates that the price gap between the two exchanges has not returned to a stable positive range for a long time.
In the light of recent weeks, the indicator has clearly been in a negative zone in late July, with a further decline on 30 and 31 July, which fell to about -0.14 to -0.15 per cent. After entering early August, the discount, although narrow, remained in negative condition overall.
A brief upswing in the early part of the month, and then again.
Between 4 and 10 August, the indicator returned to the vicinity of the zero axis at one point and rose briefly to positive values. The data show that around 7 to 10 August, the highest was around 0.08 to 0.11 per cent, with the strongest performance from 9 to 10 August.
However, the round did not last long. By around 10 August, the target had quickly fallen from 0.10 per cent above and fell back into the negative zone. After fluctuations around the zero axis on 11 and 12 August, the fall again deepened on 13 and 14 August, with readings continuing from around -0.05 per cent to close to -0.10 per cent.
Weaknesses in indicators do not amount to a single funding conclusion
The market usually uses Coinbase Premium Index as one of the reference indicators for United States funding needs, but this data does not provide a separate indication that institutional funds are flowing out of the Bitcoin market. The performance of the indicator is affected by the mobility of exchanges, the structure of the market, arbitrage activities and time-frame differences between regions.
Against this background, the price of bitcoin still hovers around $63,000. The price differential continued to be negative, further explaining that the relative buyout on the Coinbase side had not significantly increased, rather than giving direct financial conclusions in a single direction.