Bitcoin’s price ended the historically bullish month of October with a loss for the first time in seven years. Although the month started in typical fashion – on a bullish tear, the intense downturn did not begin until October 10, when US President Donald Trump threatened new trade tariffs on China.
While the United States and China appear to have reached a temporary truce, the cryptocurrency market has been unable to find similar relief. In fact, the latest on-chain data shows that US investors are still less optimistic about the digital asset market, especially Bitcoin.
Negative Coinbase Gap Premium Coincides With Massive ETF Outflows
In a November 1 post on social media platform revealed that demand for the world’s largest cryptocurrency has been extremely low in the United States in recent days. The relevant indicator here is the Coinbase Premium Gap, which has entered deep red territory in recent days.
This on-chain metric measures the difference between the Bitcoin price 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 means US-based investors are aggressively buying Bitcoin. On the other hand, a negative Coinbase Premium Gap usually indicates heavy selling pressure for the market leader.
According to data highlighted by Maartunn, this on-chain metric is back around -$80, reflecting significant selling pressure from US institutional players. This reduced demand can be seen in the disappointing performance of US-based Bitcoin Exchange-Traded Funds (ETFs) in recent days.
Data from SoSoValue shows that Bitcoin ETFs recorded total net outflows of more than $191 million on Friday. This was the third straight day of negative outflows, following withdrawals of nearly $500 million each on Wednesday and Thursday.
From a historical perspective, a negative Coinbase Premium Gap is often correlated with periods of sluggish or downward movement for the BTC price. Therefore, with the current intense selling pressure from major US investors, it is difficult to see the major cryptocurrency making a strong recovery in the coming days.
Bitcoin price at a glance
At the time of writing, BTC’s price is just above $110,200, reflecting a paltry 0.9% increase in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down exactly 1% over the past seven days.