Panic selling Bitcoin on Coinbase triggers a Binance price gap that reveals a messy institutional market failure

Coinbase’s Bitcoin (BTC) price dropped below competing exchanges this week, and the gap continues to widen.

CoinGlass reported on Jan. 26 that its Coinbase Bitcoin Premium Index, which tracks the price difference between Coinbase’s BTC/USD and Binance’s BTC/USDT, turned sharply negative, indicating Bitcoin trades at a discount on the largest US venue compared to offshore competitors.

that flare during stress periods, noting order book depth can thin asymmetrically across venues.

If Coinbase’s bid depth…