Bitcoin Dips as Coinbase Premium Hits 77-Day Negative Streak

What the Coinbase Discount Means

The Coinbase Premium Index measures the price difference between Bitcoin on Coinbase (favored by US institutions) and international exchanges. When it turns negative, it means Bitcoin is trading at a discount on Coinbase, signaling that US institutional sellers outnumber buyers.

The current streak started on May 19 and has now lasted nearly double the previous record of 40 days set earlier this year. According to Coinglass, the latest premium rate stood at -0.1369%, reflecting sustained institutional selling pressure.

Institutions Are Liquidating Holdings

Markus Thielen, head of 10x Research, explains what’s happening: The persistent discount of Coinbase prices relative to global exchanges suggests selling pressure from US-based institutions continues to outweigh buying demand.

This dynamic reveals a market split. While some segments show interest in Bitcoin, a powerful institutional selling force is actively liquidating positions. Thielen’s comments to Cointelegraph underscore a critical divergence: different parts of the US market are moving in opposite directions.

ETF Inflows Aren’t Enough to Counter the Selling

The selling pressure persists despite recent ETF inflows reversing June’s heavy outflows. Bitcoin ETFs attracted $172.43 million in July alone, according to Sosovalue. Yet this buying hasn’t been enough to offset the institutional liquidation happening on Coinbase.

This decoupling matters. It shows that retail and newer institutional money flowing into ETFs cannot yet absorb the selling pressure from longer-term holders unwinding positions.

History Suggests More Pain Ahead

The last time Coinbase Premium turned negative for an extended period, Bitcoin took a beating. From January 16 to February 24, the index stayed negative for 40 days. During that stretch, Bitcoin fell from $95,000 to below $65,000.

The current streak is nearly twice as long, suggesting the selling pressure may be deeper and more entrenched than the previous episode. Bitcoin’s current price below $63,000 reflects this ongoing headwind.

The Critical Question

The record-breaking Coinbase Premium streak signals one thing clearly: US institutional investors are getting out, and no amount of recent ETF optimism has reversed that trend yet. The market now faces a crucial test: can buying demand finally outweigh the liquidation efforts of these long-term holders, or will selling pressure persist until institutional capitulation is complete?

Until that question is answered, Bitcoin’s price action will likely remain pressured by this unprecedented negative streak.