Bitcoin rebounds as signs of improved U.S. demand emerge…Coinbase premium regains ground

Bitcoin (BTC) has quickly rebounded after plunging to the low-$60,000 range last week, showing signs that U.S. demand is also improving.

According to CoinDesk on the 9th (local time), the Coinbase Bitcoin premium index—used as a gauge of demand in the U.S.—showed a marked improvement during this correction phase. The index measures the gap between Bitcoin’s Coinbase price and the global average price; it fell to about -0.22% during the selloff but has recently recovered to around -0.05%.

With the premium still in negative territory, it is difficult to view the move as an aggressive shift to buying. Still, it is interpreted as a signal that some U.S. investors moved to buy the dip after forced liquidations subsided. Coinbase is widely seen as a proxy for dollar-based institutional and U.S. capital flows, and during episodes of extreme risk aversion the premium tends to widen sharply into negative (-) territory.

However, the fact that the premium has not turned positive suggests that a broader recovery in risk appetite has yet to be confirmed. In past cases, sustained positive (+) readings in the Coinbase premium have often coincided with full-fledged, trend-driven accumulation.

From a market-structure perspective, indicators supporting caution continue to appear. According to Kaiko, total trading volume across major exchanges remains sharply down from late last year’s peak, and spot trading has also failed to break out of its gradual downtrend. In a low-liquidity environment, a short-term rebound can materialize quickly once selling pressure is exhausted, but volatility could flare up again if follow-on buying fails to emerge.

Bitcoin is currently trading near the $70,000 level after rebounding more than 15% from its short-term low, but on a weekly basis it is still posting a double-digit decline. In the market, the prevailing view is that this rebound is closer to a technical and flow-driven bounce than a trend reversal.