Key Takeaways
Bitcoin’s Coinbase Premium Index has turned negative, reflecting slumping U.S. spot demand. Despite bullish leverage and reduced miner outflows, downside risks persist.
Bitcoin’s [BTC] market is facing a critical imbalance as the Coinbase Premium Index turned negative, signaling declining U.S. spot demand amid sustained bullish leverage.
Despite Bitcoin trading near $113.7K, Funding Rates remained firmly positive, reflecting strong conviction among derivatives traders.
This divergence between spot caution and leveraged optimism often precedes increased volatility.
If spot flows fail to recover while Futures exposure stays elevated, Bitcoin could face mounting pressure from both a technical and sentiment standpoint.
Miners cut back while, but is it enough?
The Miners’ Position Index (MPI) has dropped to -0.51 after a sharp 130% daily decline, suggesting reduced miner outflows relative to their annual average.
While this reduction often eases supply-side pressure, it hasn’t yet led to a bullish market response.
Traders appear hesitant, possibly waiting for broader confirmation before stepping in.
Even with miners pausing sales, the market remains in limbo, lacking strong inflows to spark momentum.
Meanwhile, Bitcoin’s NVM Ratio fell by 11.1% to 2.73, highlighting a gap between market cap and underlying network activity.
A lower ratio typically suggests the asset may be undervalued relative to user growth.
Still, this hasn’t translated into price strength, indicating the metric serves more as a longer-term signal than an immediate bullish catalyst.
While undervaluation narratives attract attention, they need stronger confirmation from inflows or trend reversals to shift market behavior.
Author: Erastus Chami
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