Bitcoin’s price correction may be far from over, as experts’ opinion on an important metric, the Coinbase Premium Index suggests.
In an X post on 2 December, on-chain analytics platform CryptoQuant said that the Coinbase Premium Index has hit a 12-month low, indicating not only low institutional demands for Bitcoin, but also a cautiousness among retail investors.
Losing interest in Bitcoin
The Coinbase Premium Index is a metric that tells you the difference in the price of Bitcoin on Coinbase relative to other exchanges.
A drop in this metric shows a weakening interest in the asset, particularly in the U.S. where Coinbase serves most of its customers.
By reaching a 12-month low of -0.237, this suggests that the interest in Bitcoin has declined, according to CryptoQuant analyst Burak Kasmeci.
If this trend continues, Bitcoin’s dominance which is currently at 56% may drop to lower levels, as the level of interest and in the asset is a key determining factor for its dominance.
If this happens, some analysts believe it will lead to the beginning of an alt season, when altcoins take over the bull market as money begins to flow into altcoins from Bitcoin.
It’s been a good ride
Although Bitcoin’s recovery is slow, the number one digital asset has gone a long way in 2024 and now 2025.
It rose to an all-time high of $108,000 in December 2024, which was unprecedented for many investors. The ETFs for Bitcoin have also done quite well, as they hold more assets now than gold ETFs.
Regardless of what happens to Bitcoin, the crypto market stands to gain since its fall means an alt season and its gain is a plus for investors as well.
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