Bitcoin Scarcity Grows as Miner and Exchange Reserves Drop by 183,253 BTC Since January
Bitcoin’s Rise to $52K Is Driven by Strong U.S. Demand, the Coinbase Price Premium Suggests
- News In 4 Seconds
Krisztian Sandor
- 0
- 4 minutes read
Bitcoin’s price premium on Coinbase hit a 9-month high, indicating demand from U.S. investors, CryptoQuant data showed.
The recent price rally to $52,000 occurred mostly during U.S. trading sessions, with modest price appreciation during Asian and European hours, 10xResearch’s Markus Thielen noted.
Bitcoin’s (BTC) latest surge to $52,000 was mainly driven by U.S. investor’s strong demand for the largest digital asset, trading data shows.
While massive inflows into the new spot bitcoin exchange-traded funds (ETF) dominated the headlines, BTC has also been trading at the highest premium in 9 months on the U.S.-based crypto exchange Coinbase.
The so-called “Coinbase Premium Index” – which measures the price difference for bitcoin on Coinbase compared to Binance, the leading exchange by trading volume – rose to 0.12 Thursday, its highest reading since May 2023, according to data from analytics firm CryptoQuant. “High premium values could indicate US investors’ strong buying pressure in Coinbase,” CryptoQuant said.
Markus Thielen, founder of 10x Research, also noted that the bulk of bitcoin’s price appreciation happened during U.S. trading hours,
“During the last 30 days, BTC has rallied +17%, with 11% of those 17% occurring during US trading hours,” Thielen said in a Thursday market report, adding that both Asian and European hours accounted only for a 3% price increase.
Bitcoin’s price rally was driven by flows during U.S. trading hours. (10x Research)
Bitcoin surpassed $52,000 this week regaining the $1 trillion market capitalization for the first time since Dec. 2021, while spot BTC ETFs attracted nearly $500 million daily net inflows. BTC is up 22% over the past month, CoinDesk data shows, outperforming the broad-market CoinDesk20 Index’s (CD20) 15% advance.
