By early 2025, the Coinbase Premium reached a 12-month low of -0.237, according to CryptoQuant analyst Burak Keshmechi.

He noted that the previous low, -0.2 on October 25, coincided with “rising uncertainty” ahead of the U.S. presidential election.

The expert attributes the decline in the Coinbase Premium to the recent correction in Bitcoin’s price to $91,500 amid low market liquidity and growing selling pressure.

“This drop not only signals insufficient institutional demand, but also indicates caution among U.S. investors,” Keshmechi stated.

He added that these trends could hinder Bitcoin’s short-term price recovery, and the market may need improved macroeconomic conditions and renewed institutional activity to regain momentum.

At the time of writing, the leading cryptocurrency is trading near $96,760, up 3.5% over the last 24 hours, according to CoinGecko.

Previously, a CryptoQuant contributor explained which investors were most actively selling Bitcoin as it approached the psychological $100,000 mark.