[Analysis] "Coinbase premium reaches a 19-month high during the sell-off... suggests institutional accumulation"

Amid a recent plunge in the virtual asset (cryptocurrency) market caused by US-China trade tensions, the Coinbase premium reportedly surged.

On the 13th (Korean time), CryptoQuant contributor CryptoOnChain said in a report, "On the 10th, while Bitcoin (BTC) plunged from $123,000 to $110,000, the Coinbase premium rose to 0.182, reaching its highest level since March 2024," and analyzed, "The fact that the premium rose amid a price plunge indicates that large purchases by U.S. institutional investors had come in."

The Coinbase premium index measures the spread (price difference) between Coinbase's Bitcoin price and Binance's Bitcoin price and is an indicator for assessing buy or sell pressure in the U.S.

The contributor explained, "That the Coinbase premium index recorded its highest level in 19 months during this sell-off means that institutions were actively buying at low prices amid a market gripped by fear," adding, "In other words, while global markets were selling off, U.S. institutional investors took advantage of fear and increased liquidity to engage in large-scale accumulation."

The contributor added, "This pattern was also observed in Ethereum (ETH) on the same day and reflects long-term conviction and strategic positioning in major asset classes," and "As a result, the area around $110,000 is likely to form a strong support zone due to institutional demand, and even if further price declines occur, active accumulation is likely to resume in this zone."