Glossary

Coinbase Premium Index

The Coinbase Premium Index measures the price gap between Bitcoin on Coinbase in US dollars and Bitcoin on a global exchange in a dollar-linked pair.

The Coinbase Premium Index compares the Bitcoin price on Coinbase with the Bitcoin price on another large exchange. The other exchange usually quotes in a dollar-linked stablecoin. The index is the difference between the two prices. It can be shown in dollars or as a percentage.

A positive value means the Coinbase price is higher. A negative value means it is lower. Many market watchers use Coinbase as a proxy for US-based spot demand, because the exchange serves many US customers. This is an assumption, not a measured fact. The index cannot show who is buying.

Several factors can move the index without a change in demand. Stablecoin pricing, exchange liquidity, trading hours and short data delays all affect it. Use the index as one input. Compare it with spot ETF flows and with price action before you draw a conclusion.