CryptoQuant analyst Burakkesmeci wrote: "On October 25, 2024, just before the US election, the Coinbase Premium Index fell to -0.200 due to increased uncertainty. However, as of the last day of last year, the indicator fell further to -0.237, hitting its lowest point in the past 12 months.
As Bitcoin fell in the low liquidity market at the end of the year, the increasing seller pressure in the US market had a significant impact on the Coinbase Premium Index, dragging it to a new low.
This decline not only indicates a lack of institutional demand, but also highlights the cautious sentiment of US investors. Unless we see a change in macroeconomic conditions or a renewed interest in institutional or retail buyers, this trend may create a challenging environment for Bitcoin's short-term price recovery."