Coinbase Premium Index Plunge Sparks Concerns Over Bitcoin’s Next Move
Coinbase Premium Index Turns Critical - Analyst Highlights What It Signals For Bitcoin Price
In a QuickTake post on the CryptoQuant platform, crypto education institution XWIN Research Japan reported that the Coinbase Premium Index metric has recently...
Bitcoin's price has faced renewed pressure in late 2025, coinciding with a steep drop in the Coinbase Premium Index. This metric, which tracks the price difference between Coinbase and other exchanges, has historically reflected shifts in US investor sentiment. The latest decline began in late November and extended into December, raising questions about market stability ahead of key economic events.
The Coinbase Premium Index started falling sharply around late November 2025. By early December, the drop aligned with Bitcoin's price slipping from higher levels. Analysts point to year-end rebalancing and tax-loss harvesting as typical factors weakening the premium during December, a pattern seen in previous years like 2018 and 2022.
The recent swings in the Coinbase Premium Index highlight its influence on Bitcoin's short-term direction. A sustained rebound could signal reduced selling pressure, while further declines may extend the downturn. For now, market watchers are closely tracking US capital flows, derivatives trends, and the premium's trajectory to gauge Bitcoin's next move.
