As explained by the on-chain analytics firm CryptoQuant in a post<\/a> on X, the BTC Coinbase Premium Index dropped into negative territory just hours before BTC went through its correction.<\/p>\n The “Coinbase Premium Index” here refers to an indicator that tracks the percentage difference between the Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).<\/p>\n When the value of this metric is positive, it means that the price listed on Coinbase is greater than on Binance right now. Such a trend implies that the users of the former platform are doing more buying than those of the latter.<\/p>\n On the other hand, negative values imply the presence of higher selling pressure on Coinbase since the price of the cryptocurrency on Binance is currently greater.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Index over the past few days:<\/p>\n <\/p>\n As the above graph shows, the Bitcoin Coinbase Premium Index had been positive earlier. Still, yesterday, the indicator dipped into the negative region and has since mostly remained inside it.<\/p>\n Alongside these red values of the metric, the cryptocurrency’s price has taken a deep hit, as it has come back down to the $68,000 level. Given the close timing, the high selling pressure on Coinbase may have something to do with this drawdown.<\/p>\n Coinbase is popularly known to be the preferred platform of US-based institutional investors, while Binance has more global traffic, so the Premium Index’s value can reflect the difference in the behaviors of American whales and world users.<\/p>\n In this rally, the Coinbase Premium Index has generally remained positive as large US-based entities have accumulated. Given the change to red values, these investors may have now taken to selling instead, thus leading to the coin’s plunge.<\/p>\n This indicator could be worth watching in the coming days. If it turns back positive for a sustained period of time, it would be a sign that the buyers are back and with them, so it might be an uptrend.<\/p>\n Regarding the latest correction, smart-money tracker Lookonchain<\/a> has pointed out that a Binance deposit wallet has moved BTC worth $329 million to a Binance hot wallet in the past 24 hours.<\/p>\n Interestingly, this same whale also moved a similar amount of Bitcoin back during the correction earlier in the month, as the below chart shared by the X user shows.<\/p>\n At the time of writing, Bitcoin is trading at around $68,100, down 4% in the past 24 hours.<\/p>\n![\"Bitcoin](\"https:\/\/www.bitrabo.com\/discover\/wp-content\/uploads\/2024\/03\/1710566163_299_Bitcoin-Coinbase-Premium-Turns-Deep-Red-Reason-Behind-Crash.jpeg\")
<\/p>\n<\/span>BTC Price<\/span><\/h2>\n
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