Bitcoin Coinbase Premium Turns Negative Amid Rising Losses

Bitcoin's Coinbase Premium Index, which measures the difference between US spot prices and futures contracts, has turned negative for the first time in three weeks. This indicates a sharp reduction in demand from US-based buyers, aligning with Bitcoin's current price drop of over $10,000.

The shift in the premium index comes as the net weekly average of BTC realized losses climbed to $829 million, suggesting reduced investor conviction. Onchain data shows that 64% of Bitcoin's supply is currently in profit, but this level has not historically supported sustained upside.

Crypto analyst Darkfost noted that the share of supply in profit typically indicates weaker conviction among holders, and this could be a sign of a potential market correction. The current readings place both metrics back near prior exhaustion zones, suggesting that the market's sell orders may exceed its buy orders.