Bitcoin Rally Driven By U.S. Coinbase Investors – Top Analyst Shares Metrics
Bitcoin hit a new all-time high yesterday, surging to $94,000, solidifying the bulls’ grip on the market. As Bitcoin continues to dominate headlines and attract investor enthusiasm, the milestone has prompted widespread speculation about the key factors driving the rally.
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Key insights from CryptoQuant CEO Ki Young Ju reveal the drivers of this historic growth. Ju said the rise was driven by Coinbase investors, with U.S. buyers playing a major role. The influx of demand from these investors highlights Domestic interest in Bitcoin is growing and highlighted the critical influence of U.S. market players on global cryptocurrency trends.
Even more exciting is the fact that market sentiment appears to be heavily influenced by President-elect Donald Trump’s pro-crypto stance. His support for the digital asset has fueled optimism across the industry, potentially creating a favorable regulatory environment that can sustain Bitcoin’s growth.
Bitcoin demand continues to drive prices
Although miners and long-term holders (LTH) took profits during this rally, Bitcoin demand remains very strong. Despite selling pressure from these groups, Bitcoin continues to rise, highlighting strong demand for the leading cryptocurrency. This strength shows how easily distributed supply can be absorbed by buyers, fueling Bitcoin’s bullish momentum.
CryptoQuant CEO Ki Young Ju recently shared insightful data about X This highlights the driving force behind this rally. Ju said U.S. investors using Coinbase played a key role in Bitcoin’s surge. He mentioned the BTC hourly Coinbase premium (volume-weighted, USDT/USD adjusted), which measures the difference in Bitcoin prices on Coinbase compared to other exchanges.
The premium is currently positive and growing, indicating that U.S. investors are willing to pay more for Bitcoin than international investors. The trend points to strong demand from U.S. market participants, likely boosted by improving market sentiment and potential regulatory optimism.
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If this uptick in U.S. demand continues, Bitcoin’s rally could extend further in the coming weeks, potentially reaching new highs before any major correction occurs. However, as with all parabolic trends, traders and analysts remain cautious, recognizing the possibility of an eventual pullback. The focus remains on Bitcoin’s strength as buyers continue to outpace sellers, driving the market higher.
BTC hits new highs (again)
Bitcoin (BTC) recently broke through its all-time high (ATH) of $93,483 and is currently trading at $93,300. While this move marked a new milestone for Bitcoin, the price has since entered sideways range within a well-established uptrend, indicating that demand continues to outpace supply. However, the breakout of ATH lacked significant momentum and was more like a mini-spring than a decisive rally. This suggests bulls may be starting to lose momentum.
Nonetheless, BTC’s ability to sustain above $89,800 in the coming hours will be crucial. Holding this key support level could pave the way for a surge to $95,000, in line with broader market expectations for continued bullish momentum. The move could reaffirm investor confidence, potentially driving further buying interest as Bitcoin hits the psychological $100,000 level.
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On the other hand, a move below $89,800 would change the short-term narrative. This scenario could cause the price to retrace to lower demand areas around $85,000, where buyers may regroup to push the price higher again. With Bitcoin consolidating near its highs, the market is awaiting a decisive move to determine whether bulls remain firmly in control or if a temporary correction is imminent.
Featured image from Dall-E, chart from TradingView
