CryptoQuant analyst Darkfost said selling pressure from professional and institutional investors has not eased and has even accelerated in recent weeks. According to him, the Coinbase Premium Index has not returned to positive territory since May 15, meaning it has remained negative for nearly 40 days.
The index tracks the difference between Bitcoin prices on Binance and Coinbase Advanced. Since Coinbase Advanced is widely used by professional and institutional investors, while Binance remains a major venue for retail traders, a persistently lower BTC price on Coinbase suggests bearish sentiment among larger market participants.
What The Macro Backdrop Shows
According to Darkfost, this trend reflects the current macroeconomic environment, which remains highly unfavorable for risk assets such as Bitcoin. He said institutional investors continue to put pressure on the market.
Recent personal consumption expenditure data reinforced that view. The headline PCE index came in at 4.1%, above expectations of 4.0%, while core PCE reached 3.4%, compared with a forecast of 3.3%. Darkfost noted that these were the highest readings since April 2023.
The analyst partly linked the rise in inflation to the conflict between Iran and the United States. Higher inflation reduces the chances of monetary easing, which adds further pressure to risk assets.
Why The Fed Is In A Difficult Position
The picture was further complicated by GDP data, which came in much stronger than expected at 2.1%. According to Darkfost, this puts the Federal Reserve in an increasingly difficult position.
A resilient economy combined with elevated inflation gives the Fed little reason to cut interest rates. As a result, the prospect of near-term policy easing has weakened, while the possibility of further tightening has returned, according to the analyst.
In this environment, risk aversion among large investors remains persistent. That is why, Darkfost said, institutional selling pressure on Bitcoin shows no clear signs of slowing.
