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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- May 06, 2025 09:52 UTC
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U.S. Bitcoin Whales Are Selling—Key Signal Suggests Price Drop Ahead
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BTC $ 105,269.77 (-2.89%) 
Coinbase Premium Turns Negative Again, signaling rising selling pressure from U.S. Bitcoin whales recently.
Bitcoin Drops From Recent Highs, falling from $97,865 to $94,162 amid U.S. selloff.
Institutions Buy Despite Whale Selling, with $425.5M in Bitcoin ETF inflows seen on May 5.
Bitcoin is once again under pressure, and this time, it’s U.S. investors who might be behind it. A key metric—the Coinbase Premium Gap—has turned negative, signaling growing selling pressure from U.S Bitcoin whales. While this indicator had improved recently, it’s now dropping again, aligning closely with Bitcoin’s price correction.
So, is more downside ahead?
Coinbase Premium Gap Seeing a Dip
According to Abram Chart, a verified on-chain analyst at CryptoQuant, a key metric called the Coinbase Premium Gap is showing that BTC is trading at lower prices on Coinbase, a U.S.-based exchange, compared to other global exchanges.
When this happens, it usually indicates that U.S. traders are selling more than they are buying, which can result in a price drop. At present, the Coinbase Premium Gap stands at -5.07.
However, this aligns with the recent correction in Bitcoin’s price, which pushes back bitcoin from a high of $97,865 to $94,162, suggesting that U.S. selling pressure could be contributing to the downturn.
Why Does It Matter?
The Coinbase Premium Gap is an important tool to track investor sentiment. The chart from Abram shows that the premium, which had gone up recently, is now going down again. If the gap stays negative, Bitcoin may keep dropping.
But if the premium goes positive again, it could mean U.S. buyers are coming back, which might help the price go up.
Institutions Keep Buying Despite Whale Selloff
Even though the data suggests that U.S. whales might be selling, big institutions and corporate Bitcoin holders are buying more. Bitcoin ETFs have recently seen strong inflows.
According to Farside Investors, Bitcoin ETF net inflows reached $425.5 million on May 5, 2025, with BlackRock’s IBIT ETF leading the way, pulling in $531.2 million.
At the same time, the largest corporate holder of Bitcoin, Strategy, formerly known as MicroStrategy, announced a new purchase. The company bought 1,895 BTC for $180.3 million at an average price of $95,167 per Bitcoin on 5th May. So far in 2025, they’ve earned a 14% return on their Bitcoin holdings.
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FAQs
The Coinbase Premium Gap tracks BTC’s price difference on Coinbase vs. global exchanges; a negative gap signals U.S. selling pressure.
Yes, a negative Coinbase Premium Gap indicates U.S. investors are selling BTC heavily, contributing to the recent price correction.
Institutions like BlackRock and Strategy (formerly MicroStrategy) are buying more BTC, offsetting some of the whale-driven sell pressure.
Yes 
No 
