Analysis: The Coinbase Premium Index indicates that Bitcoin prices may have hit bottom

According to Golden Finance, data from CryptoQuant shows that the premium of Bitcoin on Coinbase has dropped to its lowest negative level since the FTX crash. David Lawant from FalconX pointed out that such negative readings usually appear at local price bottoms and foreshadow subsequent rises. The Coinbase Premium Index measures the price difference between Bitcoin on Coinbase and Binance, which recently fell to -0.19. This indicates a weak demand from US investors and increased selling pressure, partly due to ETF fund outflows and government sales of confiscated assets through Coinbase. However, these types of readings typically signal a bottoming in prices; for example, after hitting a low in November 2022, BTC's price rose more than 50% within several months.