Coinbase premium index

Data providers compute it by comparing the BTC/USD price on Coinbase, the largest US-based exchange and a venue used heavily by American institutions, with the BTC/USDT price on a major offshore exchange. When US buyers are more aggressive than the rest of the market, Coinbase trades slightly higher and the index turns positive; when they sell harder, it turns negative.

Analysts use the premium as a rough indicator of where buying pressure originates. A persistent positive premium during a rally is read as sign of US spot demand, including from institutions and, since 2024, from flows linked to spot bitcoin ETFs, while a negative one suggests Americans are selling into strength.

The differences are usually tiny, fractions of a percent, and arbitrage closes them quickly. Readings can be affected by the USDT exchange rate, by the hours of US banking rails and by which exchanges are used, so the index is best read as a trend rather than tick by tick.