The Coinbase Premium Index is the percentage price difference between BTC-USD on Coinbase and BTC-USDT on Binance: (coinbase_price - binance_price) / binance_price × 100.

A positive value means BTC trades at a premium on Coinbase relative to Binance, suggesting stronger institutional and US-based demand (Coinbase is the primary venue for US institutions and ETF custodians). A negative value means BTC is cheaper on Coinbase, suggesting weaker US demand or selling pressure from institutional investors.

Unlike the 0-100 style indexes elsewhere in Cycle Analytics, this metric oscillates around zero, so the line is colored green above zero (premium) and red below zero (discount) instead of a fixed risk gradient.