Bitcoin Demand Stabilizes Despite Negative Premium

Bitcoin's recent price action has been marked by a decline in demand on Coinbase, with the Premium Index reaching a six-week low. According to data from CryptoQuant, the index dropped to -0.087 on May 19, its weakest reading since March 31.

This negative premium indicates that Bitcoin is trading at a lower price on Coinbase than on Binance, suggesting softer demand from US-based buyers. However, analysts note that the longer-term trend for Coinbase paints a steadier picture, with the 14-day simple moving average (SMA) of the premium index remaining above its February lows.

This recovery in the moving average is similar to previous recoveries, which preceded renewed spot demand on Coinbase during March and April 2025. Analysts believe that this trend could indicate easing sell-side pressure and a gradual rebuild of spot demand.