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Bitcoin struggles below $63K as Coinbase selling pressure rises

Bitcoin struggles below $63K as Coinbase selling pressure rises

GrafaGrafa2024/10/09 02:10
By:Isaac Francis

Bitcoin’s (CRYPTO:BTC) price struggled to stay above $63,000 after briefly touching $64,448 on October 7. 

The pullback to $62,000 signaled that bulls are not yet in full control of the market, dampening hopes for a strong October rally.

According to data from CryptoQuant, the Coinbase premium—an indicator of retail investor demand in the U.S.—remained negative since the start of October. 

A negative premium reflects a lack of buying interest from Coinbase users and suggests that selling pressure is currently dominating the market.

This selling activity on Coinbase has been a significant factor in Bitcoin’s price retreat. 

Independent trader Dom pointed out that the recent correction from $64,400 occurred due to substantial spot selling on both Coinbase and Bybit. 

On-chain analyst XBTManager added that persistent negative momentum on Coinbase indicates continuous selling from retail traders, contributing to a short-term bearish outlook.

Despite this, Bitcoin’s ETF inflows have remained strong. 

On October 7, the market saw inflows of $235.2 million into Bitcoin ETFs, marking the largest net inflow since September 27. 

Significant contributions came from institutions like BlackRock, which added $97.9 million, and Fidelity, with $103.7 million in inflows. 

However, this institutional interest has not been enough to offset the selling pressure from retail investors on certain exchanges.

While platforms like Bitfinex and Deribit show continued selling, others like BitMEX and Huobi maintain stable buying interest. 

The divergence in market sentiment between retail and institutional players reflects the ongoing uncertainty surrounding Bitcoin’s near-term price action.

At the time of writing, the Bitcoin price was $62,034.37.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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