Bitcoin’s recent rebound from its November 26 local low of $90,742 has seen it reclaim the $95,000 mark. This recovery has not been limited to Bitcoin alone, with the broader cryptocurrency market experiencing a significant surge in total market valuation. Between November 26 and 28, the total market value rose by an impressive 7.3% to reach $3.32 trillion.

As market participants continue to monitor Bitcoin’s progress, they are seeking clues as to whether it has found support at $90,000, setting itself up for a potential 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 November 22 to a weekly low of $90,742 on November 26 may be attributed to a decrease in demand from the United States. This was evident by a sharp drop in the Coinbase Premium Index over that 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 its 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.

Julio Moreno, head of research at onchain analytics platform CryptoQuant, shared the following insights in a November 27 post on X:

"Bitcoin demand growth is accelerating again after the recent price correction."

Moreno supported this statement by sharing a chart showing Bitcoin’s apparent demand continuing to rise within the expansion territory, signaling that new investors were entering the market.

Demand Expansion: The Path to Higher Prices

Moreno’s words of wisdom highlight the importance of demand expansion in driving Bitcoin prices higher. This is reflected in the chart below:

Bitcoin Apparent Demand; 30-day Sum

Source: CryptoQuant

This visualization demonstrates that new investors are indeed entering the market, with apparent demand continuing to rise within the expansion territory.

Spot Bitcoin ETF Inflows Flip Positive

BTC’s ongoing recovery aligns with renewed inflows for US-based spot Bitcoin exchange-traded funds (ETFs). These inflows flipped positive on November 26, as they returned a daily net inflow of $103 million.

This marked an end to a two-day streak of net outflows totaling $558 million. Notably, the Bitwise Bitcoin ETF recorded the largest inflow of $48 million on the day, with BlackRock’s IBIT recording no flows for the first time since November 15.

Bitcoin ETF Flows Table

Source: Farside Investors

US spot Bitcoin ETFs have attracted roughly **$30.3 billion** in cumulative net inflows to date.

This significant influx of investment into US spot Bitcoin ETFs is a positive sign for the broader market, as it points to increased interest and confidence in Bitcoin among institutional investors.

Institutional Investors Increase Exposure to Digital Assets

Additional data shows that institutional investors have been increasing 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 November 22.

This increased appetite for Bitcoin investment products from institutions is a positive catalyst for the BTC price moving forward.

Bitcoin Balance on Exchanges Falls to 6-Year Lows

The BTC balance on exchanges has continued to drop despite Bitcoin’s rise toward $100,000. Data from CryptoQuant shows that the amount of Bitcoin on exchanges has fallen below 2.4 million BTC, the lowest level since November 2018.

This decrease in BTC balances on exchanges suggests that less supply is available for potential selling as investors move funds elsewhere, such as self-custody wallets.

Conclusion

As market participants continue to monitor Bitcoin’s progress, they are seeking clues as to whether it has found support at $90,000, setting itself up for a potential march toward $100,000. The rebound in the Coinbase Premium Index and the increase in institutional investor appetite for digital assets provide encouraging signs for the broader market.

However, it is essential to remember that every investment and trading move involves risk. Readers should conduct their own research when making a decision.

By understanding these dynamics and staying informed about market trends, investors can make more informed decisions and potentially capitalize on future price movements.