Bitcoin Hits New All-Time High: Price Blasts Past $93K as U.S. Demand Kicks In

Bitcoin did it again, breaking above $90,000 and then $93,000 in the pre-US trading hours. After a few brief bumps at $90,000 earlier in the week,  Bitcoin (BTC) broke through that level Wednesday morning. Once through, more upside and then $93,000.

This Bitcoin surge is a healthy reflection of the demand from US investors. US trading activity hit a high and the price of the asset followed. According to Coinbase, this started at the opening of the US stock market. As a result,  investor interest really turned on at the opening bell and hence drove Bitcoin upwards, giving it an auspicious tone for the day.

US Market Demand and Coinbase Premium Index

This big Bitcoin surge was accompanied by a strong spike in the Coinbase Premium Index, a key metric that shows the price difference of Bitcoin on the Coinbase exchange, popular with US investors, compared to Binance.

The index hit 0.2, its highest since April, underlining that US-based demand is one of the main drivers of Bitcoin’s latest price action. The premium, according to data from CryptoQuant, means US investors and institutions are paying more per Bitcoin, which is a sign of strong market confidence that’s driving the rally.

James Straten, CoinDesk analyst, said spot CVD, which tracks the net volume difference between buys and sells, is still showing buying. He added  that every time spot CVD has gone up it’s been with a price increase, indicating that this Bitcoin surge is more resilient given it is focusing on the spot rather than futures markets. Spot driven growth means longer term investors are more confident and can mean more upside.

BlackRock’s ETF Sees Record Trading Volumes Amid Bitcoin Surge 

Advertisement Banner

Institutional interests too are not left out, BlackRock’s iShares Bitcoin ETF traded as IBIT with $1.2 billion in volume in the first hour of the US market open, making it the 4th most traded ETF across all types. This is according to data from Barchart and a sign that institutions are getting deeper into crypto-linked financial products. BlackRock’s involvement has been watched closely as with the size of its holdings and the ability to move the market. It can have a big say in Bitcoin’s push into the mainstream financial system.

Broader Market and Altcoin Reactions

The move also seemed to spill over into the broader crypto market with Ethereum and Solana, the two largest altcoins, up 1.6% and 2.7% respectively, it’s a broad based move for digital assets. The CoinDesk 20 Index is up 3.5% so Bitcoin is the market mover in this space.

Conclusion: Sustainable Growth or Volatility Ahead?

Now the question is will this Bitcoin surge continue with macro-economic uncertainty and regulatory scrutiny? Analysts say while demand has been strong lately, risks like Middle East tensions, US debt and climate issues could be problems for growth in the near term. But this does show strong market sentiment with Bitcoin’s never-before-seen move and institutional demand in the market which is a sign of more upside to come.

All hands are on deck as the  recent  Bitcoin surge could cement the foundation of the digital asset market and make Bitcoin a real investment asset for the US and institutional investors who are slowly getting into the digital asset space.

TheBITJournal is available around the clock, providing you with updated information about the state of the crypto world. Follow us on Twitter and LinkedIn, and join our Telegram channel.