Bitcoin Rebound Signals Renewed U.S. Buying as Coinbase Premium Narrows

Bitcoin (BTC) has staged a sharp rebound after last week’s steep selloff that briefly pushed prices toward the $60,000 level, and a key on-chain indicator suggests U.S. investors are cautiously returning to the market. As of Tuesday, bitcoin was trading near $69,000, recovering more than 15% from its recent intraday low, even as it remains down over 10% on the week.

One of the most closely watched indicators of U.S. demand, the Coinbase Bitcoin Premium Index, has shifted meaningfully. The index, which measures the price difference between bitcoin on Coinbase and the global market average, climbed from deeply negative levels around -0.22% during the peak of the selloff to roughly -0.05%. While still below zero, this rebound signals that U.S.-based investors began buying the dip as forced liquidations and panic selling started to ease.

Coinbase is widely seen as a proxy for institutional and dollar-denominated bitcoin flows. Historically, a strongly negative premium reflects aggressive selling or a lack of participation from U.S. investors, while a positive premium often aligns with sustained accumulation and stronger risk appetite. The current move back toward neutral suggests selective buying rather than broad-based confidence, indicating that investors are cautiously testing the waters instead of fully committing.

Market structure data reinforces this measured outlook. Aggregate trading volumes across major crypto exchanges remain well below the highs seen in late 2025, according to Kaiko. Spot market activity continues to show gradual attrition rather than a decisive surge in demand, pointing to lingering uncertainty among traders and institutions alike.

Thin liquidity has played a role in bitcoin’s sharp bounce, as prices can rise quickly once selling pressure is exhausted. However, the same lack of depth leaves the market vulnerable to renewed downside if buyers fail to maintain momentum. For now, the narrowing Coinbase premium highlights a tentative return of U.S. demand, but not yet the kind of conviction that typically drives sustained bullish trends in the bitcoin market.