TLDR
- The Coinbase Premium Gap has reached its lowest level in over a year, signaling weaker institutional demand for Bitcoin.
- The negative gap between Bitcoin prices on Coinbase and Binance indicates intensified selling pressure from institutional investors.
- CryptoQuant analysts report that institutional selling activity has increased, contributing to the current market downturn.
- US spot Bitcoin ETFs have turned into net sellers in 2026, offloading more than 10,600 BTC, further adding to selling pressure.
- The ongoing decrease in the Coinbase Premium Gap points to reduced interest and activity from professional Bitcoin investors.
The Coinbase Premium Gap has fallen to its lowest point in over a year, signaling weaker demand from institutional investors. This gap measures the price difference between Bitcoin on Coinbase and Binance, with a negative gap suggesting growing selling pressure. According to analysts, the decline highlights a potential reduction in institutional activity, with the latest figures revealing a shift in market dynamics.
Weaker Demand for Bitcoin on Coinbase
The Coinbase Premium Gap, which tracks the difference in Bitcoin’s price on Coinbase and Binance, has dropped to -167.8, its lowest level since December 2024. The metric reflects a negative gap when Bitcoin’s price on Coinbase is lower than on Binance. This shift points to weaker demand on Coinbase-linked platforms, which are generally associated with institutional investors.
CryptoQuant analyst Darkfost commented, “The selling pressure is intensifying on the institutional side.” This suggests that institutional players, who typically trade on Coinbase’s Advanced Trade platform, may be offloading Bitcoin at lower premiums. As a result, the selling activity of institutional investors could be driving Bitcoin’s price down, creating this negative gap.
Coinbase Premium Gap Suggests Decreased Institutional Activity
The Coinbase Premium Gap has steadily declined since mid-October 2025, showing a sharp acceleration over the past week. This decreasing trend suggests a reduction in the interest of institutional investors, whose activity often drives higher premiums. CryptoQuant pointed out that, in this uncertain market, institutions may be scaling back on riskier investments such as Bitcoin.
📉 The selling pressure is intensifying on the institutional side.
The Coinbase Premium Gap has never been this negative since the beginning of the year.
⁰Especially since this is a volume-weighted version, which helps reduce as much noise as possible by giving more weight to… pic.twitter.com/PfNZ0KjioT— Darkfost (@Darkfost_Coc) February 4, 2026
In its latest report, CryptoQuant highlighted that the reversal in institutional demand is substantial. The firm noted that US spot exchange-traded funds (ETFs), which had bought over 46,000 BTC last year, are now net sellers. In 2026, these ETFs have sold more than 10,600 BTC, contributing to persistent selling pressure in the market.
Bitcoin ETFs See Outflows, Adding to Selling Pressure
Recent data from CryptoQuant shows that Bitcoin ETFs have experienced $1.2 billion in outflows over the past week. These outflows reflect the broader trend of decreasing institutional demand, which has put additional pressure on Bitcoin’s price. As Bitcoin dipped to a 15-month low below $71,000, the ongoing ETF outflows continue to add to the negative gap.
With institutional investors retreating from the market, the Coinbase Premium Gap’s drop to its lowest level indicates the weakening appetite for Bitcoin among professional investors. CryptoQuant also noted that the shift from buying to selling among these investors creates a “56,000 BTC demand gap” compared to last year, further exacerbating the pressure on Bitcoin’s price.
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