Coinbase Bitcoin Premium Hits New Low As Selloff Deepens

Key Insights:

  • Coinbase Bitcoin premium hits a new low, showing stronger selling pressure from US-based traders and institutions.
  • Despite price weakness, most institutional investors still view Bitcoin as undervalued and remain positioned to hold or buy.
  • A new ADA–BTC bridge from FluidTokens could unlock decentralized Bitcoin liquidity for the Cardano ecosystem.

Coinbase premium fell to a fresh low this week as Bitcoin news focuses on how selling pressure on the US-based exchange outpaced other platforms.

Notably, this raises fresh questions about short-term price direction while institutions, chart analysts, and altcoin builders offer mixed signals.

Bitcoin News: Coinbase Premium Analysis Shows Heavy US-Led Selling

Coinbase Bitcoin Premium has continued to slide. It indicates that Bitcoin is facing stronger selling pressure on the trading platform than on offshore exchanges.

This gap, which tracks the price difference between Coinbase and other major platforms, often reflects behavior from US-based traders and institutions.

The sharp drop suggests that large holders are reducing exposure or actively hedging risk.

Data shared by CoinGlass shows the premium widening to the downside, a sign that sell orders on Coinbase are dominating recent flows.

This development stands out because Coinbase is widely used by institutional investors. When selling concentrates there, it often points to cautious positioning rather than retail panic.

Coinbase Premium Index | Source: CoinGlass
Coinbase Premium Index | Source: CoinGlass

Notably, this trend comes even as many institutions say they still see value at current levels.

According to the Coinbase Charting Crypto Q1 2026 report, around 7% of institutional investors surveyed believe Bitcoin is undervalued when trading between $85,000 and $95,000.

Only 4% said it was overvalued. Per the Bitcoin news at the time of the survey, the coin was trading near $87,600.

The report also noted that nearly a quarter of institutions viewed Bitcoin as fairly valued, suggesting that conviction is split but not collapsing.

Still, price action has remained weak as Bitcoin is down more than 30% from its October peak of $126,080.

This was a high that was followed by a sharp market crash on October 10 that erased over $19 billion in leveraged positions.

Despite the pressure, 80% of institutional investors said they would hold or add to positions if Bitcoin fell another 10%.

More than 60% have already held or increased exposure since October. Even so, the falling Coinbase premium shows that near-term caution is winning over long-term belief.

Bitcoin News: Brandt Flags Technical Risk Amid Coinbase Premium Risk

Veteran trader Peter Brandt added to the cautious tone by pointing to another sell signal on the Bitcoin chart.

According to Brandt, a bear channel has now been completed, which often suggests that downside momentum has played out but does not guarantee a rebound.

Brandt warned that price structure remains fragile and said Bitcoin needs to reclaim the $93,000 level to invalidate the current bearish setup.

Bitcoin Rebound Predictions | Source: Peter Brandt
Bitcoin Rebound Predictions | Source: Peter Brandt

Without that move, rallies may struggle to hold. He also reminded traders that chart patterns can change, but confirmation is required before confidence returns.

Per the Bitcoin news, this view aligns with the current market mood. While long-term holders talk about accumulation, short-term traders remain focused on risk levels and failed recoveries.

More importantly, the gap between belief and price continues to define the market.

ADA–BTC Bridge Emerges As Liquidity Catalyst

Away from Bitcoin news and Coinbase premium, attention is also turning to infrastructure.

A new BTC to ADA bridge is nearing completion and is being seen as a potential catalyst for Cardano ecosystem growth.

Built by FluidTokens, the Bifrost bridge uses Cardano stake pool operator consensus rather than a single custodian.

This design contrasts with Wrapped Bitcoin, which relies on BitGo and holds over $10 billion worth of BTC under one entity.

Critics have long warned that a single point of failure could put the peg and connected DeFi systems at risk.

Bitcoin - Cardano Bridge Update | Source: dori
Bitcoin – Cardano Bridge Update | Source: dori

Bifrost aims to remove that concern by offering a decentralized and permissionless model.

FluidTokens confirmed that the project has entered its final phase, with GitHub documentation now being finalized.

Once live, the bridge could allow Bitcoin liquidity to flow into Cardano without centralized custody risk.

While this does not change Bitcoin price action today, it highlights how builders are still moving forward during periods of uncertainty.

Notably, as the Coinbase premium remains under pressure, the broader market continues to balance short-term stress with long-term development.

Source: https://www.thecoinrepublic.com/2026/01/27/coinbase-bitcoin-premium-hits-new-low-as-selloff-deepens/