Institutional investors are likely looking to de-risk from Bitcoin BTC/USD as the premium on Coinbase Global Inc COIN turns negative.
What Happened: According to CryptoQuant, hourly data shows that the Coinbase Price premium indicator flipped negative on May 2.
— Maartunn (@JA_Maartun) May 8, 2022
Why It Matters: “Institutional investors and large investors often use Coinbase Pro to buy and trade Bitcoin. Following this, a negative price premium indicates that selling pressure might be coming from these types of investors,” CryptoQuant author Jan Wüstenfeld wrote.
Data also shows that more than 46.8% of Bitcoin’s supply is at a loss at these levels and unspent transaction outputs UTXO’s in a loss hit a two-year high.
#Bitcoin UTXOs in Loss hits a two-year high.
— CryptoQuant.com (@cryptoquant_com) May 9, 2022
Long-term investors typically accumulate at these levels, whereas short-term investors would want to exit their positions.
Price Action: According to data from Benzinga Pro, BTC was trading at $31,800 at the time of writing, down 5.7% over 24 hours and 17% over seven days.