Analysis: US Institutional Bitcoin Buying Still Absent, Weakening Case for Further Gains
Forecast Trend Report by Period
US institutional investors have yet to return as buyers of Bitcoin, according to a CryptoQuant analysis.
CryptoQuant contributor Rich_dady wrote on May 31 that institutions currently moving the market are sellers, not buyers.
He pointed to the Coinbase premium indicator. Bitcoin rebounded from its January low to a short-term peak near $83,000, but that move was not reflected in the Coinbase premium. Throughout the rebound, the indicator only briefly turned positive.
At the roughly $83,000 short-term high, the index did not move into positive territory. Instead, its negative reading widened, which Rich_dady said suggests US institutions saw that level as a selling zone rather than a buying opportunity.
The Coinbase premium measures the difference in Bitcoin prices between US crypto exchange Coinbase and global crypto exchange Binance. A positive reading is generally interpreted as a sign of strong US buying pressure.
Bitcoin later fell to the $74,000 range, and the Coinbase premium index now stands at -0.15, Rich_dady wrote. Although Bitcoin has already retreated from its peak, the Coinbase premium remains deeply negative, showing that conviction among US institutional buyers has yet to recover.
He added that until the Coinbase premium stays in positive territory as Bitcoin rises, the market lacks the structural spot demand needed to sustain an uptrend.
