Key Notes

Key Notes:

The negative Coinbase Premium Index coincides with $651.83 million in Bitcoin ETF outflows, signaling profit-taking by short-term investors.Institutional investment in Bitcoin tripled to $38 billion in Q4 2023, with experts predicting institutions could eventually hold 40% of ETF assets.Bitcoin struggles to maintain momentum near the psychological $100,000 threshold, with price stability potentially dependent on institutional buying patterns.

The world’s leading digital asset, Bitcoin BTC $96 656 24h volatility: 1.3% Market cap: $1.92 T Vol. 24h: $17.95 B , is under pressure since it fell below the $100,000 price mark. According to data from the analytics platform CryptoQuant, there is a sharp decline in the Coinbase Premium Index (CPI). The drop occurred shortly after the US stock market opened on Tuesday.

Bitcoin Coinbase Premium Index Drops Sharply After U.S. Market Open!

“Following the opening of U.S. markets on February 18 (Tuesday), the Coinbase Premium Index (CPI) recorded a sharp hourly decline.” – By @burak_kesmeci pic.twitter.com/ttazioKZMJ

— CryptoQuant.com (@cryptoquant_com) February 18, 2025

This CPI index tracks the price difference between Bitcoin on Coinbase and other exchanges. A negative premium suggests that US retail investors are selling, leading to downward pressure on Bitcoin’s price.

According to the data, spot Bitcoin ETF products saw a total withdrawal of $651.83 million. This happened between February 10 and February 14. Analysts believe short-term traders are taking profits, leading to lower ETF demand.

Beyond profit-taking as shown in the ETF inflows, it could also mean investors are unsure about betting more as Bitcoin struggles to break past key resistance levels.

Meanwhile, this turn of events came after the US Bitcoin ETFs started strongly in January. Coinspeaker reported that BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’s FBTC led the ETF inflows. However, more investors are looking at other funds, increasing competition.

This recent drop in Coinbase Premium came after the index dropped to a low of 0.0254% a few days ago amid investor uncertainty.

Despite the massive sell-offs, the number of institutional investors adopting Bitcoin ETFs has been growing, per recent 13F filings with the US SEC. Thus far, institutional investments tripled in the fourth quarter of last year, reaching an impressive $38 billion.

ETF expert Eric Balchunas predicted that institutions could eventually hold 40% of total Bitcoin ETF assets. This comes as investment firms like top issuers continue to increase their Bitcoin exposure, showing long-term confidence in Bitcoin.

A recent Coinspeaker report noted that institutional inflows will decide crypto’s next move.

Per market data, Bitcoin is now trading at $94,172 after falling to a low of $93,434 earlier today. It has had trouble reaching the key $100,000 mark, which experts see as important. Many speculate that factors like interest rates and regulatory trends affect where Bitcoin goes next.

Earlier today, Coinspeaker explained that the low demand from big investors makes it less likely for Bitcoin to bounce back from below $95,500. This increases the chance of Bitcoin dropping too soon.

Nevertheless, some believe that Bitcoin’s price will eventually follow the bullish sentiment of gold. This could be fueled by institutional investors and nation-states’ mainstream adoption of BTC $96 656 24h volatility: 1.3% Market cap: $1.92 T Vol. 24h: $17.95 B .

It is important to note that if short-term traders continue to cash out and ETF outflows persist, Bitcoin could see more downside before stabilizing. However, acquisitions from firms like Strategy could help Bitcoin regain momentum in the coming weeks.

Investors are watching market movement and macroeconomic trends to see how Bitcoin would respond.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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