Why U.S. Institutions Are Selling Bitcoin Faster Than Binance Traders
U.S. institutions appear to be selling Bitcoin faster than traders on Binance. As the Coinbase Premium Index has stayed negative for several days, showing that Bitcoin is trading at a lower price on Coinbase than on Binance. This selling pressure among U.S. investors comes ahead of the upcoming CPI report.Meanwhile, Bitcoin has fallen below $84,000, triggering $812.95 million in liquidations.Negative Coinbase Premium Shows Institutional Selling The Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase and Binance, has remained deeply negative.The CryptoQuant chart shows that Bitcoin’s hourly, volume-weighted Coinbase Premium has remained mostly negative since mid-September. The reading fell further after October 7, reaching around -0.0012 to -0.0013 on October 12.This suggests selling pressure on Coinbase has increased compared with Binance. Since Coinbase is widely used by U.S. professional investors, the trend may point to weaker institutional demand.Adding to these concerns, U.S. spot Bitcoin ETFs saw $65.4 million in net outflows on October 12, with all of it coming from BlackRock’s Bitcoin ETF.Why Are U.S. Investors Selling Bitcoin?The selling pressure comes as global markets face rising bond yields and inflation concerns. September CPI data is expected to show headline inflation rising to 3.7%. Investors are also watching the PPI report for signs of rising business costs.Meanwhile, the U.S. Dollar Index (DXY) has climbed above 102, reaching its highest level since April 2025. A stronger dollar and higher borrowing costs can make Bitcoin and other risky assets less attractive to investors.Bitcoin Exchange Reserves Remain LowDespite the selling pressure, CryptoQuant data show Bitcoin exchange reserves remain near 2.67 million BTC. Reserves fell from around 2.72 million BTC in late September to 2.67 million BTC in early October.This means fewer Bitcoins are held on exchanges and immediately available for sale.Can Bitcoin Reclaim $84,000?On the technical side, Crypto analyst Ali Martinez has identified $84,000 as an important level to watch.According to his analysis, Bitcoin has a similar setup to a previous rebound, when a move above the 50-period simple moving average (SMA) on the four-hour chart helped confirm a rally.Martinez said a four-hour close above $84,000 could open the way toward $93,000.