A key Bitcoin metric that has frequently flagged a potential short-term rally for BTC in the past few weeks has fallen into bearish territory, indicating a shift in interest among investors towards the largest cryptocurrency asset.

Coinbase Premium Index For Bitcoin Hits New Low

IC News, an informative outlet recently reported that Bitcoin’s Coinbase premium index has taken a hit as the metric has experienced a sharp decline to new lows, raising questions about investors’ demand for the digital asset.

Historically, the Coinbase Premium has been used as a gauge of domestic interest in Bitcoin by measuring BTC’s price differences on the Coinbase platform and other cryptocurrency exchanges. This drop in the crucial metric shows that buying pressure from retail investors in the United States might be waning.

According to the platform, the Coinbase premium has plummeted to about -0.2%, marking its lowest level in the past two years. The platform noted that the value of the signal points to a possible fall in US-based trading platforms like Coinbase at the moment.

This sharp drop comes after the indicator has been displaying a positive trend in the past few weeks, pointing to a potential short-term rally for Bitcoin. Typically, a rise in the Coinbase premium shows that big investors are capitalizing on the growing strength of BTC. Meanwhile, a drop in the indicator suggests a shift in investors’ and traders’ confidence.

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Author: Godspower Owie