As Bitcoin fell about 4% in October, the Coinbase Premium—a measure used to track demand from U.S. buyers—dropped to its most negative level since June, signaling that buyers remained weak.
According to a post by CryptoQuant dated October 27, the Coinbase Premium was not positive for a single day during the month of October so far. The data firm interpreted this uninterrupted negative trend as a sign that U.S. Bitcoin buyers were staying on the sidelines.
The same post put Bitcoin’s loss since the start of the month at 4.2%. As the price fell, there was also no significant recovery in the indicator tracking U.S. demand.
What does a negative price spread indicate?
According to CryptoQuant’s definition, the Coinbase Premium tracks the difference between the BTC/USD price on Coinbase and the BTC/USDT price on Binance. A negative value means Bitcoin is trading on Coinbase below the Binance price used for comparison.
For this reason, the indicator is monitored to assess buying power on Coinbase. CryptoQuant’s point was not simply that the spread briefly turned negative, but that it did not move into positive territory at any point in October and fell to its most negative level since June.
The firm’s assessment focuses on the weakness of support from U.S. buyers. The data covers the period through October 27; it is not the final result for the full month of October.
Not investment advice.