Cryptocurrency analyst Ali Martinez spotlighted a prolonged lull in institutional buying pressure for Bitcoin (CRYPTO: BTC) as the apex cryptocurrency hit a 20-month low on Wednesday.
Institutional Demand Dries Up Martinez pointed to the 46-day negative streak in the Coinbase Premium Index, a CryptoQuant metric that measures the price gap of Bitcoin between Coinbase and offshore exchanges.
It is a widely used barometer for U.S. institutional demand and overall market sentiment.
"A negative premium means BTC is trading cheaper on Coinbase, suggesting that U.S. institutional buying pressure has dried up," the analyst stated.
Martinez also highlighted the "cooling period" in spot exchange-traded fund flows.
