The Coinbase Premium Index has recently transitioned into positive territory, marking a significant shift in U.S. demand for Bitcoin after a period of negative readings lasting 24 days. The index, which tracks the price differential between Coinbase and Binance, moved from negative 0.1 percent to a slight positive of 0.049 percent, indicating that U.S. buyers are finally outpacing offshore sellers.
This reversal comes in the wake of a notable decline in market activity following the downturn in October. Market analysts have noted that this uptick in the Coinbase Premium Index signals renewed interest in spot trading among U.S. investors. Recent data from CryptosRus highlights that this is the first time since the October correction that U.S. demand has shown such strength, as the index reflects a real-time view of trading flows.
During the downturn, trading on offshore exchanges exerted downward pressure, resulting in a prolonged period of negative premium readings. However, the recent positive shift suggests that U.S. institutional players are beginning to absorb the selling pressure from international markets. Historically, rebounds from similar lows have been precursors to substantial price increases, with past instances leading to gains of 30 to 50 percent over several weeks.
As the market continues to recover from recent corrections, the increase in over-the-counter (OTC) activity in the U.S. is also noteworthy. A rise in OTC liquidity often precedes a stabilization of exchange-traded funds (ETFs) and a general increase in appetite for spot transactions. This combination of factors could signal the end of a washout phase, positioning the market for potential growth.
Traders are closely monitoring whether ETF flows will stabilize in tandem with the positive moves in the Coinbase Premium Index. While there has been a decrease in ETF activity since late October, a stronger U.S. bid typically correlates with enhanced institutional engagement. As such, market participants are vigilant for signs that could affirm sustained demand in the coming weeks.
The resurgence of U.S. spot demand is particularly significant given the historical context; the index rarely turns positive during heavy distribution phases. This development could set the stage for a more robust market environment as traders look for confirmation of ongoing bullish activity.
