Bitcoin trading activity increased at Coinbase Prime while the US spot discount narrowed on the latest completed day, pointing to an easing in weak buying sentiment. US prices nevertheless remained below those overseas.

The combination suggests improving participation without clear evidence of stronger US buying demand. Higher trading volume alone does not establish whether institutions were buying or selling.

The Coinbase premium, which measures the price difference between Coinbase and Binance, stood at -0.20% on October 31, -0.16% on November 1, -0.18% on November 2, -0.15% on November 3 and -0.09% on November 4. The discount narrowed on November 4, although the live reading was back at -0.19% as of 13:41 UTC on November 5.

A positive premium indicates a higher US price, while a negative reading indicates a discount. The smaller discount on the latest completed day suggests easing weakness in US buying demand. However, all five daily readings remained negative, leaving little evidence that US demand was stronger than demand overseas.

Coinbase Prime trading volume reached 13,202.62 BTC on November 4, up from 6,305.39 BTC on November 3. Valued at the November 4 closing price of $80,428.31, that turnover amounted to approximately $1.06 billion.

The increase in activity at the institutional trading venue points to greater market participation. Because turnover includes both purchases and sales, it cannot by itself establish institutional accumulation.

CFTC disclosures showed CME leveraged funds holding 5,887 long contracts and 9,866 short contracts as of October 27. Short positions exceeded long positions. These figures are published weekly and predate the latest spot-market readings.

The VIX stood at 16.80 on November 5, up 0.19 points, or 1.14%, from 16.61 on November 4. It remained below its November 3 reading of 20.83.

The VIX measures expected volatility in US equities. Its lower level compared with November 3 suggests that equity-market anxiety had eased, although the latest daily move showed a modest increase in expected volatility.

The dollar index fell to 101.51 on November 4 from 101.87 on November 3, a decline of 0.36 points, or 0.35%. The US Treasury yield stood at 4.95% on November 3. The softer dollar offered a more supportive backdrop for risk sentiment, while the Treasury yield remained a potential constraint.

The indicators suggest that weakness in US bitcoin buying sentiment has eased, with increased institutional trading activity and lower equity-market volatility than on November 3. The continuing US spot discount, its widening in the live reading and the larger leveraged-fund short position leave the picture mixed. Subsequent premium readings and sustained trading participation will help establish whether the improvement persists.

[Editor's note] Wall Street liquidity radar examines US bitcoin sentiment through four indicators: CME leveraged-fund positioning, the Coinbase premium, the VIX and Coinbase Prime trading volume. Together, they provide context on futures positioning, relative spot prices, equity-market uncertainty and institutional trading activity.

Enna Lee

Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to [email protected].