Institutional Sell Pressure on Bitcoin Eases as Coinbase Premium Gap Narrows

Institutional investors have been a major force driving down the price of Bitcoin over the past year. However, recent data suggests that their sell pressure is beginning to ease.

The Coinbase Premium Gap, which measures the difference between the prices of Bitcoin on Coinbase and other exchanges, has narrowed sharply in recent weeks. This indicates that institutional investors are no longer pulling out of Bitcoin at the same pace as before.

According to data from Darkfost, a cryptocurrency analyst, the Coinbase Premium Gap fell to -$96 in January, signaling heavy disengagement from professional investors on Coinbase. However, it has since improved to -$23.8, indicating that selling pressure is easing.

In addition to the improvement in the Coinbase Premium Gap, recent data shows that ETF flows are also stabilizing. In fact, spot Bitcoin ETFs have attracted $54 billion in total inflows since their launch, with a daily net inflow of $88.10 million recorded in the past week.

While these developments suggest that institutional sell pressure is easing, it's worth noting that Bitcoin remains below its 200-day trend level. This indicates that the long-term trend for the asset is still weak.