Originally published on: November 28, 2024
Bitcoin has bounced back from its recent low of $90,742 to climb back up to $95,000, marking a strong recovery in the cryptocurrency market. With the total market valuation rising by 7.3% between November 26 and 28 to reach $3.32 trillion, investors are now eager to determine if $90,000 could be the support level Bitcoin needed before making its way to $100,000.
One key indicator to watch is the Coinbase Premium Index, which measures the difference in pricing between the BTC/USD pair on Coinbase and Binance’s BTC/USDT equivalent. The index has seen a significant rebound from its low, indicating a rise in demand from US retail investors. This is further supported by an uptick in inflows for US-based spot Bitcoin exchange-traded funds (ETFs), with a daily net inflow of $103 million on November 26.
Institutional investors are also increasing their exposure to digital assets, with Bitcoin investment products seeing inflows of $3.07 billion during the week ending November 22. This surge in institutional interest could serve as a positive catalyst for Bitcoin’s price in the near future.
Furthermore, the decreasing balance of Bitcoin on exchanges suggests that there is less supply available for potential selling, as investors opt to move their funds to self-custody wallets instead. This trend, coupled with the renewed appetite for Bitcoin investment products, indicates a bullish trajectory for the cryptocurrency.
While these signs point to a potential recovery for Bitcoin, it is important to note that all investment decisions carry risks, and readers should conduct their own research before making any trades. Stay informed and explore more articles like this to stay ahead of market trends!