Compass Investments

– Bitcoin is correcting after recent highs, sagging from $97,865 to $94,162 amid a sell-off in the US.

institutions are buying despite whale sales. On May 5, $425.5 million flowed into bitcoin ETFs.

Bitcoin is under pressure again, and this time it may be U.S. investors who are behind it. A key indicator, the Coinbase Premium Gap, has turned negative, signaling increasing selling pressure from U.S. whales. While this indicator has recently improved, it is now declining again, which is in line with the bitcoin price correction.

What’s next, will there be further declines?

According to Abram Chart, a verified analyst at CryptoQuant, a key metric called Coinbase Premium Gap shows that BTC is trading cheaper on the U.S. exchange Coinbase compared to other global exchanges.

When this happens, it usually indicates that US traders are selling more than buying, which can cause the price to fall. Currently, Coinbase Premium has a gap of -5.07.

This, however, coincides with the recent correction in bitcoin’s price, which has pushed it back from a high of $97,865 to $94,162, suggesting that U.S. selling pressure may be contributing to the drop.

Why is this important?

The Coinbase Premium Gap is an important tool for tracking investor sentiment. Abram’s graph shows that the premium, which was recently rising, is now falling again. If the gap remains negative, bitcoin may continue to fall.

But if the premium turns positive again, it could mean that U.S. buyers are returning, which could help the price rise.

even if the data points to U.S. whale sales, large organizations and corporate bitcoin holders are building up their positions. Bitcoin ETFs have seen significant inflows recently.

According to Farside Investors, on May 5, 2025, net inflows into bitcoin ETFs reached $425.5 million, led by BlackRock’s IBIT ETF, which raised $531.2 million.

At the same time, the largest corporate holder of bitcoin, Strategy, formerly known as MicroStrategy, announced a new purchase. On May 5, the company purchased 1,895 BTC worth $180.3 million at an average price of $95,167 per bitcoin. So far in 2025, they have earned a 14% return on their bitcoins.

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