Institutional Buyers and Confident Miners Lay Groundwork for Bitcoin’s Growth

U.S. investor activity in Bitcoin seems to be picking up, with the Coinbase Premium Index recently turning positive for the first time since mid-December 2024.

This development points to a shift in sentiment among institutional players, who often favor Coinbase for executing large-scale trades.

CryptoQuant’s analysis attributes this uptick to a rise in demand following the approval of spot Bitcoin ETFs, which has positioned the U.S. market as a key driver of Bitcoin’s current trajectory.

The report also noted a significant outflow of over 4,000 BTC from Coinbase earlier this week, suggesting accumulation by larger investors eager to capitalize on the current market dynamics.

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Bitfinex analysts have observed easing selling pressure that previously dragged Bitcoin prices to a December low of $91,000. They point to tightening liquidity, with the Liquidity Inventory Ratio (LIR) plunging from 41 months of coverage in October to just 6.6 months.

This rapid shift mirrors conditions seen during Bitcoin rallies in early 2024, hinting at a brewing demand-driven price movement fueled by reduced availability of BTC on the market.

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Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.