Bitcoin Demand Holds Steady Despite Negative Readings

The recent decline in the Coinbase Premium Index has raised concerns about Bitcoin's demand among US-based buyers. The index dropped to -0.087 on May 19, its weakest reading since March 31. A negative premium indicates that Bitcoin is trading at a lower price on Coinbase than on Binance.

However, a closer look at the data reveals a more complex picture. The 14-day simple moving average of the premium index has remained above its February lows, suggesting that steady buyer interest and easing sell-side pressure are still in play. This trend is reminiscent of March 2025, when similar recoveries in the moving average preceded renewed spot demand on Coinbase.

Crypto analyst Amr Taha notes that activity across the Coinbase-linked network has remained elevated during the latest pullback. The Base blockchain revenue climbed to nearly $972,000 on May 19, exceeding late-March levels even as the Coinbase Premium Gap remained negative.