Coinbase Premium

Definition ∞ Coinbase Premium indicates a higher price for a cryptocurrency on the Coinbase exchange compared to other global exchanges. This price difference often suggests increased buying pressure from US-based institutional or retail investors. It serves as an indicator of localized demand for digital assets. The premium reflects a specific market dynamic within a particular geographic region.
Context ∞ Analysts frequently monitor the Coinbase Premium as a sentiment indicator for the US cryptocurrency market. A sustained premium suggests robust demand from American investors, potentially influencing broader market trends. News articles often reference this metric when discussing shifts in investor activity or the relative strength of the US digital asset market.