Bitcoin dropped to around $73,000 as growing selling pressure from US investors and heavy leverage in derivatives markets weighed on prices. On-chain data shows the decline followed weeks of weakening spot demand and rising market imbalance.
One of the clearest signs came from the Coinbase Premium Index, which fell far below its three-month average. The index reached a negative deviation of 1,083%, while the raw premium gap dropped to -94.95. This suggests Bitcoin was trading at a discount on Coinbase compared with offshore exchanges, often seen as a sign of strong selling activity from US-based investors and institutions.
The move adds to concerns that the market is entering a broader distribution phase rather than experiencing a short-term pullback.
Does Coinbase price gap show strong US investor selling?
The Coinbase Premium Index tracks the price difference between Coinbase and other major exchanges. A large negative reading usually shows stronger selling pressure from US traders compared with global markets.
According to the data, selling on Coinbase increased as Bitcoin lost support around the $73K level. Analysts believe some of this supply may have come from institutional investors and ETF-related flows exiting regulated US markets.
The scale of the discount suggests the selling pressure went beyond normal profit-taking and reflected weakening confidence in the short term.
Binance inflows and leveraged trades make market drop worse
While Coinbase showed heavy selling, Binance recorded strong Bitcoin inflows over the past week. Net inflows averaged nearly 1,500 BTC, well above normal levels, suggesting traders were moving supply toward Binance as global buyers attempted to absorb the selling pressure.
At the same time, Binance funding rates remained heavily positive before the drop, showing that many leveraged traders were still betting on higher prices even as spot demand weakened.
The sharp decline toward $73K likely triggered liquidations across leveraged positions, accelerating the market fall. Traders are now watching whether Bitcoin can stabilise near current levels or move lower toward the $70K to $72K support zone.
Meanwhile, Bitcoin showed early signs of recovery as on-chain data points to calmer miner activity and stable long-term investor behaviour. While the price remains below recent highs, key indicators suggest that selling pressure from both miners and long-term holders has eased compared to earlier in the year.
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