Bitcoin reached a historic high yesterday, soaring to $94,000, solidifying the bulls' control over the market. This milestone has sparked widespread speculation about the key factors driving the rebound, as Bitcoin continues to make headlines and attract investor enthusiasm.
Key insights from CryptoQuant CEO Ki Young Ju clarify the driving factors behind this historic surge. According to Ju, this rebound was driven by Coinbase investors, with U.S. buyers playing a significant role. The influx of demand from these investors highlights the growing domestic interest in Bitcoin and underscores the critical influence of U.S. market participants on global cryptocurrency trends.
Even more exciting is that market sentiment seems to be heavily influenced by the president-elect Donald Trump's supportive stance on cryptocurrencies. His support for digital assets has sparked optimism across the industry, potentially creating a favorable regulatory environment to sustain Bitcoin's growth.
Bitcoin demand continues to drive prices.
Bitcoin demand remains very strong, even as miners and long-term holders (LTH) take profits during this rebound. Despite selling pressure faced by these groups, BTC continues to rise, highlighting strong market demand for the leading cryptocurrency. This strength suggests that buyers are easily absorbing distributed supply, thereby propelling Bitcoin's bullish momentum.
CryptoQuant CEO Ki Young Ju recently shared insightful data about X, emphasizing the driving forces behind this rebound. According to Ju, U.S. investors using Coinbase played a key role in Bitcoin's surge. He cited the BTC Hourly Coinbase Premium (volume-weighted, adjusted for USDT/USD), which measures the difference in Bitcoin prices on Coinbase compared to other exchanges.
The premium is currently positive and growing, indicating that U.S. investors are willing to pay higher prices for Bitcoin than international investors. This trend suggests strong demand from U.S. market participants, possibly buoyed by improved market sentiment and potential regulatory optimism.
If this upward momentum in U.S. demand continues, Bitcoin's rally could further extend in the coming weeks, potentially reaching new highs before any significant corrections occur. However, like all parabolic trends, traders and analysts remain cautious, aware of the possibility of a eventual pullback. The focus remains on Bitcoin's strength, as buyers continue to outpace sellers, driving the market higher.
BTC sets a new high (again).
Bitcoin (BTC) is trading at $93,300, having recently broken through the historical high (ATH) of $93,483. While this move marks a new milestone for BTC, the price has since entered a range within a definitive upward trend, indicating that demand continues to outstrip supply. However, the breakout above the ATH lacks significant momentum, resembling more of a minor spring than a decisive bounce. This suggests that the bulls may be starting to lose steam.
Nevertheless, BTC's ability to maintain above $89,800 in the coming hours will be crucial. Holding this key support level could pave the way for a surge to $95,000, consistent with the broader market expectation for continued bullish momentum. This move could reaffirm investor confidence, potentially further driving buying interest as Bitcoin targets the psychological level of $100,000.
On the other hand, a drop below $89,800 would change the short-term narrative. Such a scenario could lead to a pullback to around the lower demand zone of $85,000, where buyers may regroup to push prices higher again. As BTC consolidates near its ATH, the market is waiting for a decisive move to determine whether the bulls still hold firm or if a temporary correction is imminent.