"Coinbase Premium Index: Bitcoin Has Not Fully Escaped the 'Risk Zone' Yet"

Bitcoin (BTC) prices are showing a rebound, but analysts say the Coinbase Premium Index, which gauges U.S. investor demand, still requires cautious interpretation.

According to cryptocurrency-focused outlet U.Today on the 5th, Bitcoin prices rose more than 1.6% over the past 24 hours, but the Coinbase Premium Index remains in negative territory. The index measures the price difference of Bitcoin between Coinbase and major global exchanges; when negative, it is interpreted as relatively weak buying demand in the U.S. market or dominant selling pressure.

The Coinbase Premium Index currently stands at -0.196%, showing some recovery from the deeper negative readings recorded recently. However, it remains in negative territory, making it difficult to say Bitcoin has fully exited the risk zone.

The market interprets the improvement in the index as a neutral or limited bullish signal. Because a shift of the Coinbase Premium into positive territory would be needed to confirm strong, institution-driven buying demand, the current movement is seen as more of an exploratory phase than a full trend reversal.

Peter Schiff, known as a proponent of gold investment, advised that the recent Bitcoin rebound is temporary and urged investors to focus on precious metals instead of cryptocurrencies. In contrast, Michael Saylor, Strategy chairman, indicated he may make additional Bitcoin purchases this year and maintains a long-term bullish outlook.

The outlet said, "The Coinbase Premium Index shows that selling pressure is easing, but it is still too early to judge that Bitcoin has fully entered a safe zone," adding that "whether U.S. investors actively switch to buying will be the key variable that determines future movement."