From an institutional standpoint, the backdrop remains broadly bearish, although a clear improvement has emerged in recent weeks.
As BTC moved above $60,000, the monthly averaged Coinbase Premium Gap fell to -$96, reflecting a significant disengagement from professional investors on Coinbase. At the same time, the monthly average netflow for spot Bitcoin ETFs stood at -$210M.
This combined selling pressure weighed heavily on Bitcoin at the start of the year.
Today, however, conditions appear to be improving. The Coinbase Premium Gap has continued to narrow, now reaching -$23.8, while ETF netflows have recovered to -$19M.
Although both metrics remain in negative territory, the trend has clearly shifted and could turn positive in the very near term. Such a development would meaningfully support the current market dynamics surrounding Bitcoin.
Written by Darkfost