Bitcoin is once again under pressure, with recent analyses suggesting potential reasons tied to U.S. investors. We explore current trends and their implications for the crypto market.
Dip in Coinbase Premium Gap
According to Abram Chart, a verified on-chain analyst at CryptoQuant, a key metric called the Coinbase Premium Gap indicates that BTC is trading at lower prices on Coinbase, a U.S.-based exchange, compared to other global exchanges. Currently, the Coinbase Premium Gap stands at -5.07, suggesting that U.S. traders are selling more than they are buying, potentially leading to price drops.
Importance of Coinbase Premium Gap
The Coinbase Premium Gap is an important tool for tracking investor sentiment. Abram's chart shows that the premium, which had recently increased, is now declining. If the gap remains negative, Bitcoin may continue to drop. However, if the premium turns positive again, it could mean that buyers are returning, potentially aiding in price recovery.
Institutional Investments in Bitcoin
While data points to selling pressure from U.S. whales, significant institutions continue to buy. Bitcoin ETFs have seen substantial inflows, with Farside Investors reporting $425.5 million in net inflows on May 5, 2025. BlackRock’s IBIT ETF led with inflows of $531.2 million. At the same time, the largest corporate Bitcoin holder, Strategy (formerly MicroStrategy), announced a new purchase of 1,895 BTC for $180.3 million at an average price of $95,167 per Bitcoin on May 5. So far in 2025, they have realized a 14% return on their investments.
The current Bitcoin market shows mixed dynamics: sales from U.S. investors may contribute to price declines, while institutional investments continue to signify strong interest in the asset.
