Institutional sentiment toward Bitcoin has fallen to its weakest level in two years, according to CryptoQuant author Darkfost.
The Coinbase Premium Index has remained below zero for more than 900 cumulative hours. The extended negative reading suggests that professional and institutional investors are continuing to reduce their Bitcoin exposure. This comes amid ongoing macroeconomic uncertainty, even as Bitcoin has posted modest weekly gains.
Coinbase Premium Points to Institutional Selling Pressure
Darkfost explained that the Coinbase Premium Index compares Bitcoin prices on Coinbase Advanced, which is mainly used by institutional and professional investors, with prices on Binance, the world’s largest exchange by spot and derivatives trading volume.
A negative premium means Bitcoin is trading at a lower price on Coinbase than on Binance. This suggests stronger selling pressure from institutional investors compared with the broader market.
According to Darkfost, the current streak of more than 900 cumulative hours below zero represents the longest period of institutional pessimism seen in the past two years.
Macroeconomic Uncertainty Keeps Institutions Cautious
Darkfost linked the continued selling pressure to a more uncertain global economic environment.
The analyst highlighted several factors affecting institutional risk appetite. These include persistent inflation, high oil prices weighing on economic growth, and uncertainty around U.S. monetary policy under the Federal Reserve’s new leadership.
Unlike retail traders, institutional investors often reduce market exposure during periods of heightened macroeconomic and geopolitical uncertainty. Darkfost said this pattern is currently visible in Bitcoin markets.
Bitcoin Maintains Weekly Gains Despite Institutional Selling
Despite the bearish institutional positioning, Bitcoin has shown resilience. According to CoinMarketCap data, Bitcoin is trading at $65,958, down 0.32% over the past 24 hours. However, the cryptocurrency remains up 1.78% over the past seven days, although it is still down 27% year-to-date.
The gap between continued institutional selling and Bitcoin’s ability to hold weekly gains suggests that other market participants have absorbed much of the selling pressure.
However, the negative Coinbase Premium indicates that institutional sentiment remains cautious.