Coinbase Premium Signals Waning Bitcoin Interest in the US

The indicator of institutional demand for Bitcoin in the US has turned negative for the first time since May. This suggests a weakening of buying pressure and a potential market correction, noted CoinDesk analyst Omkar Godbole.

This refers to the Coinbase premium—the price difference between the BTC/USD pair on this exchange and Binance. A positive value indicates high demand from American investors, including large funds. Previously, the premium had remained positive for over 60 consecutive days, marking the longest such period in history.

Data from Glassnode confirms the market’s cooling.

#Bitcoin ETF inflows dropped 80% last week.

But derivatives positioning remains elevated and on-chain data shows nearly all $BTC supply is still in profit.

This week’s Market Pulse unpacks the shifting balance of conviction across market participants: https://t.co/4LBrKjNh0f pic.twitter.com/NavS6wo7nI

— glassnode (@glassnode) July 29, 2025

Last week, inflows into spot Bitcoin ETFs fell by 80%. On-chain metrics also declined: the number of active addresses decreased by 2.4%, and transfer volumes dropped by 23%.

Meanwhile, nearly 97% of circulating Bitcoins remain in profit. This creates a risk of investors cashing out if the market weakens further.

Positive Trends in Altcoins

The decline in interest in Bitcoin is accompanied by a capital shift to altcoins. According to Bitfinex, Ethereum’s dominance in open interest rose from 17% to 26%, while Bitcoin’s fell from 51% to 41%.

Bitcoin rebounded from a sharp 5% drop last week, defending short-term lows at $114,800.
Over $1.1B in longs were liquidated — revealing just how overheated the market had become.

Speculation cooled… but is leverage already back on the rise?https://t.co/3dBC91w0pk pic.twitter.com/TODF4IV5rc

— Bitfinex (@bitfinex) July 28, 2025

Total open interest in leading altcoins has increased from $26 billion to $44 billion over four weeks.

Godbole warned that the growth of speculative leveraged positions in altcoins makes the market vulnerable. This increases the likelihood of cascading liquidations in the event of a sharp price change.

The situation could be exacerbated by rising volatility in the stock market. The CBOE Volatility Index (VIX), often referred to as the “fear index,” historically spikes in August. Turbulence on Wall Street could affect the digital asset market, the expert believes.

Earlier, Godbole stated that Bitcoin’s bullish momentum was waning.