Bitcoin is facing intensified selling pressure from U.S. institutional investors as the Coinbase Premium Gap plunged to a 12-month low this week. This metric, which tracks the price difference between Bitcoin on Coinbase and Binance, dropped to approximately -0.15%, signalling a sharp decline in demand from American spot buyers. The collapse in the premium accompanies a broader market downturn, with BTC struggling to hold the $75,000 level amid significant capital outflows from U.S. spot ETFs.
The negative reading suggests that Bitcoin is trading at a discount on Coinbase compared to offshore exchanges like Binance. According to on-chain analysts at CryptoQuant, this “deep red” territory typically reflects a lack of aggressive dip-buying by long-term holders in the West. Historically, prolonged periods of a negative Coinbase premium have been associated with fragile price action and further downside risk unless U.S. demand stabilizes.
📉 The selling pressure is intensifying on the institutional side.
The Coinbase Premium Gap has never been this negative since the beginning of the year.
⁰Especially since this is a volume-weighted version, which helps reduce as much noise as possible by giving more weight to… pic.twitter.com/PfNZ0KjioT— Darkfost (@Darkfost_Coc) February 4, 2026
Institutional appetite wanes as ETF flows reverse
Recent data highlights a material reversal in institutional demand, which served as a primary tailwind for Bitcoin throughout much of late 2025. While U.S. spot ETFs were aggressive accumulators last year, they have recently become net sellers. On January 30, 2026, alone, institutional outflows reached $528 million, following an even larger $817 million exit the previous session.
Market participants eye critical support zones
Despite the prevailing bearish bias, some analysts suggest the current discount could signal an accumulation phase. Historical trends show that deeply negative premium readings have occasionally preceded local market bottoms, as seen in the recovery after the FTX collapse in 2022. However, immediate technical indicators remain cautious, with Bitcoin trading well below its 200-day exponential moving average (EMA).
Meanwhile, Coinbase has expanded its prediction markets, making this feature available to users across all 50 U.S. states. Through a partnership with the regulated platform Kalshi, Coinbase now allows customers to trade on the outcomes of real-world events using straightforward binary contracts, including everything from political elections to economic changes.
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