Why are U.S. institutions aggressively selling Bitcoin while global funds on Binance continue to absorb the supply?
Over the past few days, Bitcoin’s negative premium on Coinbase has continued to widen, indicating that buying demand in the U.S. market is significantly weaker than on Binance. U.S. institutions are reducing their risk exposure, while funds elsewhere in the world have not followed suit. This has highlighted the divergence in how Bitcoin is being priced.
U.S. institutions manage portfolios and focus on Treasury yields, the U.S. dollar index, inflation, and geopolitical risks. At present, the 10-year Treasury yield remains above 5%, and the U.S. dollar index has broken above 102, with macro risks continuing to weigh on liquidity. To limit drawdowns and meet risk-management requirements, institutions naturally tend to “get out first and ask questions later.”
But traders on Binance come from a broader global market, with different capital structures, risk appetites, and investment horizons. Coinbase’s persistent negative premium suggests, at the very least, that relative selling pressure in the U.S. market has not made global markets equally weak.
If global buyers continue to absorb the supply and BTC prices strengthen again, U.S. institutions will eventually have to consider reallocating. Once the dollar and Treasury yields retreat and risk appetite recovers, the “smart money” now rushing to sell could well chase prices higher and buy back in, becoming fuel for the next rally.
Bitcoin is becoming increasingly global. U.S. institutions can influence prices in the short term, but they may not determine the long-term trend. #比特币突破8.4万美元 $BTC #比特币市占率回升至60% @Binance BiBi @币安广场
Over the past few days, Bitcoin’s negative premium on Coinbase has continued to widen, indicating that buying demand in the U.S. market is significantly weaker than on Binance. U.S. institutions are reducing their risk exposure, while funds elsewhere in the world have not followed suit. This has highlighted the divergence in how Bitcoin is being priced.
U.S. institutions manage portfolios and focus on Treasury yields, the U.S. dollar index, inflation, and geopolitical risks. At present, the 10-year Treasury yield remains above 5%, and the U.S. dollar index has broken above 102, with macro risks continuing to weigh on liquidity. To limit drawdowns and meet risk-management requirements, institutions naturally tend to “get out first and ask questions later.”
But traders on Binance come from a broader global market, with different capital structures, risk appetites, and investment horizons. Coinbase’s persistent negative premium suggests, at the very least, that relative selling pressure in the U.S. market has not made global markets equally weak.
If global buyers continue to absorb the supply and BTC prices strengthen again, U.S. institutions will eventually have to consider reallocating. Once the dollar and Treasury yields retreat and risk appetite recovers, the “smart money” now rushing to sell could well chase prices higher and buy back in, becoming fuel for the next rally.
Bitcoin is becoming increasingly global. U.S. institutions can influence prices in the short term, but they may not determine the long-term trend. #比特币突破8.4万美元 $BTC #比特币市占率回升至60% @Binance BiBi @币安广场