Bitcoin (BTC) latest rebound from the Nov. 26 local low of $90,742 has seen it reclaim $95,000. The recovery has also been witnessed across the broader cryptocurrency market, with the total market valuation rising 7.3% between Nov. 26 and Nov. 28 to $3.32 trillion.
Market participants are now looking for clues on whether Bitcoin has found support at $90,000 before continuing its march toward $100,000.
Coinbase Premium Index: BTC demand returns
Bitcoin’s recent drop from its new all-time high of $99,655 reached on Nov. 22 to a weekly low of $90,742 on Nov. 26 could be attributed to a decrease in demand from the United States. That was evident by a sharp drop in the Coinbase Premium Index over the same period.
The Coinbase Premium Index measures the difference in pricing between the BTC/USD pair on the largest US exchange, Coinbase, and Binance’s BTC/USDT equivalent.
The chart below shows that the index has bounced back, rising from -0.0387 on June 26 to the current value of 0.091.
Bitcoin Coinbase Premium Index. Source: CryptoQuant
A rising Coinbase premium is a proxy for increasing demand from US retail investors.
“Bitcoin demand growth is accelerating again after the recent price correction,” Julio Moreno, head of research at onchain analytics platform CryptoQuant, said in a Nov. 27 post on X.
Moreno shared a chart showing Bitcoin’s apparent demand continuing to rise within the expansion territory, signaling that new investors are entering the market.
“Demand expansion is what will get Bitcoin higher.”
Bitcoin apparent demand; 30-day sum. Source: CryptoQuant
Spot Bitcoin ETF inflows flip positive
BTC’s ongoing recovery aligns with renewed inflows for US-based spot Bitcoin exchange-traded funds (ETFs) as they flipped positive on Nov. 26.
The US spot Bitcoin ETFs returned a daily net inflow of $103 million on Nov. 26, ending a two-day streak of net outflows totaling $558 million.
Notably, the Bitwise Bitcoin ETF (BITB) recorded the largest inflow of $48 million on the day, with BlackRock’s IBIT recording no flows for the first time since Nov. 15.
Bitcoin ETF flows table. Source: Farside Investors
US spot Bitcoin ETFs have attracted roughly $30.3 billion in cumulative net inflows to date.
Additional data shows that institutional investors increased their exposure to digital assets. Bitcoin investment products saw inflows of $3.07 billion, making up more than 98% of the total inflows during the week ending Nov. 22.
Flows by asset. Source: CoinShares
This points to a renewed appetite for Bitcoin investment products from institutions, which tends to be a positive catalyst for the BTC price moving forward.
Bitcoin balance on exchanges falls to 6-year lows
The BTC balance on exchanges continued to drop despite Bitcoin’s rise toward $100,000 when all of the investors were in profit, data from CryptoQant shows.
The amount of Bitcoin on exchanges has continued to fall in November below 2.4 million BTC, the lowest level since November 2018.
BTC reserve on exchanges. Source: CrytoQuant
Decreasing BTC balances on exchanges suggests that less supply is available for potential selling as investors move funds elsewhere, such as self-custody wallets.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
