US Spot Discount Deepens as Institutional Activity Slows

US spot Bitcoin is trading at a deeper discount relative to international markets, and institutional trading activity has declined. Market volatility remains limited, suggesting this downturn is more closely tied to reduced demand within crypto rather than broader market fears.

As of 2:40 PM KST on September 17, the Coinbase Premium index recorded -0.1051% according to TokenPost PRO. The trend has shown a narrowing from -0.0549% on September 13 to -0.0182% on September 14 before widening again to -0.0797% on September 15 and -0.0801% on September 16, reaching -0.1051% on September 17.

A positive value would indicate US investors are paying a premium compared to global markets, while the current negative figure suggests US spot Bitcoin is cheaper than international prices, reflecting weaker buying pressure in the US market.

The Coinbase Prime trading volume for institutional-exclusive channels (Coinigy data) stood at 6,974.53 BTC on September 16, a 31.4% drop from 11,173.51 BTC on September 15, with a $360.76 million dollar-denominated 24-hour trading volume.

Coinbase Prime represents the primary channel through which institutions trade directly. The significant decline in trading volume indicates weaker institutional activity compared to the previous day.

The CME Bitcoin futures leverage fund positions, reported weekly by the US Commodity Futures Trading Commission (CFTC), stood at 5,146 longs and 13,038 shorts as of September 8. Shorts outnumbered longs by a factor of 2.5, indicating downward pressure.

The VIX index, measuring US market volatility, recorded 17.71 on September 16, up from 17.20 the previous day. This follows a trend from 16.46 on September 9 to 17.71 on September 16. A reading below 20 generally indicates calm market conditions, suggesting crypto weakness may not be directly tied to broad market fear.

The US Dollar Index stood at 100.31 on September 17, unchanged from the previous day. The US 10-year Treasury yield was at 5.00% as of September 15. Higher dollar strength or interest rates can weigh on risk assets like Bitcoin.

US markets appear more cautious than aggressive in their approach. Whether the discount narrows and Coinbase Prime trading volume rebounds will be key indicators for potential market sentiment shifts.