Pioneering Group Fuels Bitcoin’s Rally towards $110K Mark Once More

Key Points

• The Coinbase Premium Index indicates strong US demand for Bitcoin, potentially pushing its value past $110K.
• Both large and small investors are contributing to the demand, leading to increased Bitcoin scarcity.

The Coinbase Premium Index has remained in positive territory for three weeks, which is a first since 2025. This trend, as reported by Alphractal, suggests a resurgence of US investors in the Bitcoin market.

US Investors Drive Bitcoin Rally

When Bitcoin trades at a premium on Coinbase, it indicates a stronger buying interest from US market participants. Presently, this demand for Bitcoin is high across all market participants, including whales and small traders.

Whale activity, in particular, has increased during this period. According to Glassnode, the number of Bitcoin whales holding at least 1,000 BTC has been on the rise since late April. This surge in whale wallets suggests aggressive Bitcoin accumulation despite the recent rally.

Small Buyers Also Show Interest

Retail participation has also increased, mirroring the behavior of whales. The Taker Buy Sell Ratio on CryptoQuant turned positive, indicating that more market takers are executing buy orders than sell orders. This broad demand has led to Bitcoin becoming increasingly scarce.

The Stock-to-Flow Ratio of Bitcoin has also risen from 41k BTC to 45k BTC, indicating a 4k increase in Bitcoin scarcity. A higher scarcity often precedes a rise in prices if demand continues to rise.

What’s in Store for Bitcoin?

Coinbase is undoubtedly experiencing a surge in activity from both large and small holders. This is reflective of the overall market conditions, with all types of investors turning to Bitcoin accumulation.

Even with concerns over $150 million worth of BTC being moved through Coinbase, the overall sentiment among US investors remains bullish. This is likely because the transferred Bitcoins were not sold, but instead repositioned by the whales.

If this accumulation trend continues, Bitcoin could revisit the $110K mark for the fourth time. This time, if the price holds above that level, it could potentially turn into strong support, leading to a breakout to new highs. However, if whale transfers result in selling, Bitcoin might face a quick correction down to $106,204.