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Investing.com-- Bitcoin’s price premium on crypto exchange Coinbase Global (NASDAQ:COIN) turned negative through late-October and early-November, following a flash crash and extended weakness in the world’s largest cryptocurrency.
Bitcoin’s price on Coinbase is used as a gauge of U.S. retail sentiment towards crypto, given the exchange’s dominance in U.S. markets. The world’s largest crypto tends to trade at a premium to the global average price in times of strong crypto demand.
But Bitcoin was seen trading at a relative discount on Coinbase through late-October and early-November, indicating that U.S. retail sentiment towards crypto had turned largely negative.
The trend also came after Bitcoin lost about 5% in October, ending a seven-year streak of strong performance during the month– a trend dubbed as “uptober” by traders.
Crypto analytics firm Coinglass’ Coinbase Bitcoin Premium index showed Bitcoin trading at a discount on Coinbase for four consecutive days– October 31- November 3, its longest such streak since mid-August.
Coinglass said a negative premium signaled selling pressure in U.S. markets, declining risk appetite, and increased risk aversion. The four days of negative premium also coincided with capital outflows from U.S.-listed Bitcoin exchange-traded funds.
Bitcoin lost some 5% in October after a flash crash at the beginning of the month, and has struggled to recover since. The crypto traded down 2.7% at $107,636.4 by 01:49 ET (06:49 GMT) on Monday.