When trading cryptocurrencies, these 3 premium indicators are worth paying attention to, as they reflect the buying intent of U.S. institutions, U.S. individual investors, and South Korean investors:
① Coinbase Premium
A positive premium in green indicates that U.S. investors are buying actively, which is a bullish signal. This is because Coinbase, as a domestic compliant exchange in the U.S., is more sensitive to interest rates and policies, and its premium can reflect the sentiments of U.S. individual investors.
② CME Futures Premium
Futures prices on the Chicago Exchange usually show a positive premium. Since CME primarily targets institutional investors and there are liquidity-related spreads with futures, along with closing times, this often creates gaps with Binance's spot market that need to be filled; this premium reflects the participation attitude of U.S. institutions.
③ South Korean Premium
South Korea is an active market for individual retail investors in cryptocurrency trading, but due to strict capital controls and the lack of short-selling mechanisms, their positive premium often reaches 10%-20%, and in extreme cases, over 50%; however, once a downturn occurs, the pullback can be severe, reflecting the trading enthusiasm of South Korean retail investors.
