Bitcoin’s Coinbase Premium Turns Negative as U.S. Crypto Sentiment Weakens
Bitcoin’s price premium on Coinbase Global (NASDAQ: COIN) turned negative in late October and early November, signaling fading confidence among U.S. retail investors following a flash crash and ongoing weakness in the cryptocurrency market.
The Coinbase premium is widely viewed as a barometer of U.S. crypto sentiment, since the exchange dominates American trading volumes. During times of strong demand, Bitcoin (BTC) typically trades at a premium on Coinbase compared to the global average price.
However, data now shows that Bitcoin traded at a discount on the platform through late October and early November — a clear sign that U.S. retail sentiment toward crypto has turned bearish.
The shift followed a 5% decline in Bitcoin’s price during October, ending a seven-year streak of positive “Uptober” performance, a period historically known for strong gains in the crypto market.
Negative Premium Signals Selling Pressure in U.S. Markets
According to crypto analytics firm Coinglass, its Coinbase Bitcoin Premium Index recorded four straight days of negative readings between October 31 and November 3 — the longest such streak since mid-August.
Coinglass noted that a negative premium often indicates rising selling pressure, lower risk appetite, and a growing sense of market caution among U.S. traders. The decline also aligned with capital outflows from U.S.-listed Bitcoin exchange-traded funds (ETFs), reinforcing signs of retreating investor confidence.
Bitcoin fell roughly 5% in October after an early-month flash crash and has since struggled to regain momentum. As of 01:49 ET (06:49 GMT) on Monday, BTC was trading 2.7% lower at $107,636.40.
