Bitcoin Surges to New Record Over $93K as Strong U.S. Demand Crushes Resistance Level

As a seasoned crypto investor with a knack for spotting market trends and a portfolio that includes a healthy dose of Bitcoin (BTC), I must say the recent surge past the $90,000 resistance level and push towards $93,000 has caught my attention. The strong demand from U.S. investors, as evidenced by the Coinbase Premium Index reaching its highest level since April, is a promising sign that institutional money continues to flow into Bitcoin.

Earlier this week, bitcoin (BTC) repeatedly bounced away from the $90,000 mark. However, during the U.S. morning hours on Wednesday, it successfully broke through that resistance level. Following this breakthrough, its price continued to climb rapidly, surpassing $93,000.

The significant jump above a crucial price point occurred exactly when U.S. conventional trading started at 9:30 am Eastern Time, suggesting robust interest from American investors was responsible for the price surge.

The premium index for Bitcoin’s Coinbase platform, which is a crucial indicator of U.S. interest, has surged to 0.2, its highest level since April, according to CryptoQuant. This suggests that American investors are experiencing significant buying pressure.

As a crypto investor, I often compare the prices of the top digital assets on Coinbase, a platform favored by U.S. investors and financial institutions, with those listed on Binance, the globally recognized exchange with the highest trading volume. This comparison helps me gauge any potential price discrepancies between these two major platforms.

Initially, it wasn’t evident who was doing the purchasing, but U.S.-listed bitcoin spot ETFs began the day with robust trading activity. Shares of BlackRock’s iShares Bitcoin Trust ETF, IBIT, which manages $40 billion in assets and is the largest spot ETF, were exchanged at a rate of approximately $1.2 billion within the first hour of trading, placing it as the fourth most actively traded product among all ETFs according to Barchart data.

Currently, Bitcoin is slightly retreating and being traded at approximately $92,200. It has increased by nearly 7% in the last 24 hours, surpassing the 3.5% growth of the CoinDesk 20 Index. Meanwhile, Ethereum’s ether (ETH) and Solana (SOL) have experienced gains of around 1.6% and 2.7%, respectively, in the same timeframe.

Spot buying drives the rally

The difference between buy and sell trade volumes, known as cumulative volume delta (CVD), is exhibiting robust flows, with a predominant portion of the net volume originating from buyers. Notably, whenever there’s an increase in spot CVD, it has historically been followed by an upward trend in the asset’s price. This pattern implies that the current rally might be more enduring since the buying activity appears to be driven not by futures markets, according to CoinDesk analyst James Van Straten.