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The Coinbase Premium Index recently fell to a 12-month low, fueling discussions about the implications for Bitcoin (BTC).
In a recent Quicktake post, CryptoQuant analyst Burakkesmeci stated that this decline signals a lack of institutional demand for Bitcoin.
The analyst added that this highlights caution among US investors.
What is the Coinbase Premium Index and the current market outlook
The Coinbase Premium Index tracks the price difference between Bitcoin on Coinbase Pro and Binance Exchange.
This index gauges US investor demand relative to the global market, with negative readings indicating selling pressure.
Ahead of the US presidential election, the Coinbase Premium Index fell to 0.200 on October 25, 2024.
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However, on December 31, 2024, the index fell to a 12-month low, reaching 0.237.
Burakkesmeci emphasized that increasing pressure from sellers on the US market coincided with Bitcoin’s fall to $91,500. This comes amid low market liquidity at the end of the year.
This decline signals a lack of institutional demand and creates a challenging environment for a short-term recovery in Bitcoin’s price.
However, the CryptoQuant analyst noted that selling pressure could ease following renewed interest from institutional or retail buyers.
He added that a change in macroeconomic conditions could also change the current dynamics.
A key bitcoin price trend to watch in the coming weeks
The 2025 BTC candle started with optimism, indicating a continuation of the uptrend after a consistent uptrend since 2015.
At press time, the price of Bitcoin was trading at $97,337, up 3.72% in the last 24 hours.
As Bitcoin prepares for new highs, there are several trends to watch in the coming weeks. First, the political landscape in the US will shape the future trajectory of Bitcoin.
Many expect that the inauguration of Donald Trump as the US President on January 20 will have a positive effect on the price of Bitcoin.
Ahead of his second term, Trump has repeatedly promised to make the US the world’s “crypto hub” and favor Bitcoin.
His administration could initiate policies that will boost Bitcoin adoption and attract funding to the sector. The president-elect is reportedly targeting Bitcoin to reach $150,000.
The spot Bitcoin exchange-traded fund (ETF) market is another key trend to watch in the coming weeks.
The status of Bitcoin ETF flows indicates investor sentiment towards Bitcoin.
Huge inflows or outflows can provide insight into the wider adoption of Bitcoin in mainstream finance.
Bitcoin ETF and Latest Price Forecast
However, the Bitcoin ETF spot market seems muted in the past few days.
Bitcoin ETFs saw two consecutive days of significant outflows before recording inflows of $5.3 million on December 31, 2024.
Data from Farside Investors shows that Fidelity’s FBTC recorded the largest inflows, totaling $36.8 million.
On the other hand, BlackRock’s Bitcoin ETF recorded the largest outflows, amounting to $23.5 million.
Despite the reduced interest of institutional investors, the market continues to receive attention. Asset investment manager Bitwise recently announced plans to launch a new crypto ETF.
As the market enters the new year, several participants have predicted bold price targets for Bitcoin.
While analysts at VanEck predict Bitcoin will reach $180,000, those at Bitwise expect the coin to cross $200,000.
