Bitcoin U.S. Demand Indicator Shows Signs of Recovery After Crash

TLDR

• Bitcoin’s price has rebounded sharply from a recent dip, recovering to just under $70,000.
• The Coinbase Bitcoin Premium Index has moved closer to neutral, suggesting a recovery in U.S. demand.
• U.S.-based investors appear to have stepped in to buy the dip as selling pressure eased.
• Despite the rebound, the Coinbase Premium Index remains below zero, indicating selective buying rather than broad confidence.
• Trading volumes remain lower than previous highs, indicating that demand is still subdued in the market.

Bitcoin’s price has rebounded sharply from last week’s drop to $60,000. This recovery coincided with a shift in a key U.S. demand indicator. The Coinbase Bitcoin Premium Index has shown signs of a gradual recovery, suggesting renewed interest from U.S. investors.

Coinbase Bitcoin Premium Index Moves Toward Neutral

The Coinbase Bitcoin Premium Index tracks the price difference between bitcoin traded on Coinbase and the global average. After a steep drop, the index has moved from -0.22% to around -0.05% by Tuesday. Although it remains negative, the index’s movement suggests that U.S. investors are buying after the recent dip.

The index measures U.S.-based demand, with a negative value typically signaling weak demand or selling pressure. The move closer to neutral points to selective buying, particularly as Bitcoin stabilized. “The rebound indicates that some buyers saw value at lower levels,” said an industry expert.

Bitcoin U.S. Demand Shows Limited Activity

Despite the index’s move back toward neutral, the premium has not turned positive. A positive premium often signals broader confidence and accumulation among U.S. investors. As of now, the current trend reflects cautious buying rather than an indication of sustained demand from institutional funds.

Market data from Kaiko shows that overall trading volumes remain below their late-2025 peaks. This suggests that while the market has seen some recovery, the demand remains relatively low. Thin liquidity continues to characterize the market, with prices bouncing sharply but vulnerable to further downside.

Market Conditions Continue to Be Fragile

Bitcoin is currently trading just under $70,000, recovering more than 15% from its intraday low. However, the cryptocurrency remains down by over 10% from its recent high. The current market structure indicates that the recovery might be fragile, with more selling pressure possible if demand doesn’t strengthen.

At this point, the market is showing signs of exhaustion. The rebound, while notable, does not point to a clear return of widespread demand. Bitcoin’s U.S. demand signal may need more time to fully recover, and the market remains sensitive to changes in investor sentiment.

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