Analysis: US Institutional Bitcoin Buying Still Absent, Weakening Case for Further Gains

Buying by US institutional investors has yet to return to Bitcoin, according to a CryptoQuant analysis.

CryptoQuant contributor Rich_dady wrote on May 31 that the market is currently being driven by institutional sellers rather than institutional buyers.

He highlighted the Coinbase Premium indicator. Bitcoin rebounded from its January low to a short-term peak of about $83,000, but that move was not reflected in the Coinbase Premium. The indicator moved into positive territory only briefly during the rebound. At the $83,000 peak, the negative reading widened instead of turning positive, which he said suggests US institutions viewed that level as a selling zone rather than a buying opportunity.

The Coinbase Premium measures the difference in Bitcoin prices between US crypto exchange Coinbase and global crypto exchange Binance. A positive reading is generally seen as a sign of strong US buying pressure.

Bitcoin later fell to the $74,000 range, while the indicator now stands at -0.15, Rich_dady wrote. Although the token has already pulled back from its high, the Coinbase Premium remains deeply negative, showing that buying conviction among US institutions has yet to recover.

He added that until the Coinbase Premium enters sustained positive territory alongside rising Bitcoin prices, the market lacks the structural spot demand needed to support a broader rally.