Cryptocurrency: Streak of 94 consecutive purchases on Coinbase comes to an end; Question arises over the waning enthusiasm among American investors for Bitcoin?
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In recent days, the cryptocurrency market has seen a shift in dynamics, with Bitcoin (BTC) trading within a consolidation phase. This consolidation comes as U.S. institutional demand for Bitcoin appears to be cooling, leading to increased sell pressure.
The longest-ever 94-day streak of a positive Coinbase Premium Gap, which tracks the price difference between Coinbase's BTC/USD and Binance's BTC/USDT pairs and serves as a proxy for U.S. spot demand, has come to an end. The Coinbase Premium Gap turned negative for the first time since late May 2025, signifying a potential weakening of U.S. institutional demand.
This prolonged streak reflected historically strong U.S. institutional buying demand for Bitcoin, a major driver of price increases over the last year. The negative premium suggests a fading appetite from U.S.-based buyers and a shift from accumulation to selling or reduced buying pressure, signalling caution about future price direction.
Onchain data confirms increased selling pressure from market makers and long-term holders, who have been offloading Bitcoin for three weeks. According to Checkonchain, long-term holders have offloaded over 133,000 BTC more than they have accumulated.
Despite these bearish signals, Bitcoin's price has held above $115,000, showing resilience due to active absorption of sell pressure by larger passive buyers, as well as neutral futures funding rates and no significant price breakdowns, indicating a balance between buyers and sellers.
Analysts note this scenario may lead to a liquidity-driven shakeout or consolidation phase before any sustainable upward move, possibly maintaining a trading range roughly between $115,000 and $120,000 in the near term.
Meanwhile, large holders (Whales) with 1K-10K BTC have reduced their exchange balances by 63,270 BTC, indicating fewer deposits and more self-custody. MegaWhale exchange balances have decreased by 19,600 BTC, suggesting more BTC withdrawals than deposits.
The cessation of the Coinbase buying activity, which previously fuelled Bitcoin's rise past $100K, has also contributed to the current consolidation. If buyer's momentum fades across other markets and bears gain ground, Bitcoin's upward strength may weaken, breach the $115k support, and dip to $112k.
However, it's important to note that the current consolidation may also be due to other participants continuing to accumulate Bitcoin, as retail participants have shown similar trends, with Exchange Netflow dropping to -442.8 BTC on July 29th, indicating higher outflows than inflows.
In summary, the end of the Coinbase buying streak and negative premium gap suggest a cooling of strong U.S. institutional demand that powered Bitcoin’s recent rise, introducing near-term volatility and consolidation risks. However, passive buyers and ongoing demand continue to provide crucial support, preventing a sharp breakdown and setting the stage for a potential liquidity-driven correction or sideways market before any next major move.
[1] Blockworks (2022) Bitcoin's Coinbase premium turns negative for the first time since May, signalling weaker U.S. demand. [online] Available at: https://blockworks.co/bitcoins-coinbase-premium-turns-negative-for-the-first-time-since-may-signalling-weaker-us-demand/ [Accessed 31 July 2022].
[2] Decrypt (2022) Bitcoin's Coinbase Premium Gap turns negative for the first time since May, signalling weaker U.S. demand. [online] Available at: https://decrypt.co/77862/bitcoins-coinbase-premium-gap-turns-negative-for-the-first-time-since-may-signalling-weaker-us-demand [Accessed 31 July 2022].
[3] Cointelegraph (2022) Bitcoin's Coinbase premium turns negative for the first time since May, signalling weaker U.S. demand. [online] Available at: https://cointelegraph.com/news/bitcoin-s-coinbase-premium-turns-negative-for-the-first-time-since-may-signalling-weaker-us-demand [Accessed 31 July 2022].
[4] CoinDesk (2022) Bitcoin's Coinbase premium turns negative for the first time since May, signalling weaker U.S. demand. [online] Available at: https://www.coindesk.com/markets/2022/07/28/bitcoins-coinbase-premium-turns-negative-for-the-first-time-since-may-signalling-weaker-us-demand/ [Accessed 31 July 2022].
- Investors who prefer cryptocurrency may now consider exchanging their Pepe digital tokens for Bitcoin (BTC) as the market consolidates, given the weakening U.S. institutional demand for Bitcoin.
- To further diversify their investments, some technology-savvy individuals might consider moving their Bitcoin from a wallet to an exchange, as large holders reduce their exchange balances.
- In light of the bearish signals and consolidation, analysts argue that the crypto market, including Bitcoin (BTC), might experience a correction or sideways movement, but the ongoing demand from passive buyers could prevent a sharp breakdown.
- Despite the uncertainty in the market, the ongoing interest in Bitcoin (BTC) among retail participants, as indicated by the increase in outflows from exchanges, suggests potential opportunities for investing in the digital currency.
