Bitcoin price closed the historically bullish month of October with losses for the first time in seven years. While the month began in typical fashion: with an upward streak, the intense slowdown did not begin until October 10, when US President Donald Trump threatened new trade tariffs on China.
Now, although the United States and China seem to have found a temporary truce, the cryptocurrency market has not been able to find similar relief. In fact, the latest on-chain data suggests that US investors are even less optimistic about the digital asset market, specifically Bitcoin.
Negative Coinbase Gap Premium Coincides with Massive ETF Outflows
In a Nov. 1 post on social media platform revealed that the world’s largest cryptocurrency has been in extremely low demand in the United States in recent days. The relevant indicator here is Coinbase Premium Gap, which has entered deep red territory in recent days.
This on-chain metric measures the difference between the price of Bitcoin on the US-based Coinbase exchange (USD pair) and the global Binance exchange (USDT pair). A positive difference indicates that the flagship cryptocurrency has a higher value on Coinbase than on Binance.
When the Coinbase premium gap is positive, it implies that US-based investors are buying Bitcoin aggressively. On the other hand, a negative Coinbase premium gap usually indicates strong selling pressure for the market leader.
According to data highlighted by Maartunn, this on-chain metric is once again around -$80, reflecting significant selling pressure from US institutional players. This reduced demand can be seen with the disappointing performance of US-based Bitcoin exchange-traded funds (ETFs) in recent days.
Data from SoSoValue shows that Bitcoin ETFs recorded a total net outflow of more than $191 million on Friday. This marked the third consecutive day of negative outflows, having seen withdrawals of nearly $500 million each on Wednesday and Thursday.
From a historical perspective, a negative gap in Coinbase premium often correlates with periods of slow or downward BTC price movement. Therefore, with the current intense selling pressure from large US investors, it is difficult to see the leading cryptocurrency recovering strongly in the coming days.
Bitcoin price at a glance
At the time of writing, the BTC price sits just above $110,200, reflecting a measly 0.9% increase over the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down exactly 1% over the last seven days.
