Bitcoin ’seller pressure’ pushes Coinbase premium index to 12-month low
The Coinbase premium index, indicating Bitcoin retail demand in the U.S., fell to -0.23 on December 31, its lowest in 12 months, amid increasing seller pressure. Bitcoin briefly dropped to $91,479, attributed to a low-liquidity market at year-end. The last similar index level occurred in January 2024, coinciding with the launch of spot Bitcoin ETFs. Analysts warn that this trend could hinder short-term price recovery unless macroeconomic conditions change or retail and institutional interest surges. Long-term Bitcoin holders, having held for over 155 days, are seeing significant profits, with a realized price of $24,298, suggesting potential sell-offs. In contrast, short-term holders have a higher average cost basis at $86,753, reflecting a smaller profit margin.
