Coinbase discount narrows… “Signal that Bitcoin selling pressure is easing”

An analysis suggests that selling pressure in the market is easing as Bitcoin (BTC) has recently eliminated the price discount that had appeared on the U.S. exchange Coinbase.

On the 9th, crypto (virtual asset) analytics firm Matrixport said on X (formerly Twitter) that the “Coinbase Bitcoin premium indicator has recently recovered to a neutral level.”

The Coinbase premium is an indicator that shows the difference between Bitcoin’s price on the U.S. exchange Coinbase and prices on global exchanges. Generally, when the Coinbase price is higher, it is interpreted as a sign of stronger buying by U.S. investors.

According to Matrixport, since October last year Bitcoin had been trading at a persistent discount (negative premium) on Coinbase versus global exchanges. This suggests that Coinbase users were relatively heavier sellers of Bitcoin, keeping selling pressure in U.S.-based fund flows.

However, when Bitcoin recently fell to around $60,000, that discount narrowed quickly and later returned to a neutral level. Matrixport explained that “this change is a signal that a substantial portion of the accumulated selling supply may have been absorbed by the market.”

Matrixport also said recent price action supports that interpretation. Despite heightened geopolitical risks and broad weakness across risk assets, Bitcoin is seen as maintaining a relatively stable trend.

Matrixport added that “the strong distribution phase recently seen in the market may be gradually weakening,” and said market conditions could improve gradually.