Bitcoin Reaches $99K as Increased Coinbase Premium Suggests Significant U.S. Interest

Bitcoin (BTC) experienced a significant surge on Wednesday afternoon, nearing the $100,000 level after trading within a narrow range earlier in the day. The price briefly dropped below $95,000 but quickly bounced back, climbing nearly 5% to reach a high of $99,177, as reported by CoinDesk data. Over the last 24 hours, Bitcoin posted a 3.2% gain, outpacing the CoinDesk 20 Index, which only saw a 1.3% increase.

This surge coincided with a notable spike in the “Coinbase Premium,” a key indicator that tracks the demand for Bitcoin among U.S. investors. During the rally, Bitcoin traded more than $300 higher on Coinbase compared to Binance, suggesting that the price movement was driven by strong demand from American traders.

The Coinbase Premium measures the price difference between Bitcoin on Coinbase, which is widely used by U.S.-based institutional investors, and Binance, a global platform favored by retail traders. The widening premium indicates growing interest from U.S. investors.

The rally also came after Federal Reserve Chair Jerome Powell’s comments about Bitcoin, where he compared it to a digital version of gold, positioning it as a competitor to the precious metal rather than a challenge to the U.S. dollar. Additionally, Bitcoin’s surge was timed with Donald Trump nominating Paul Atkins, a known supporter of cryptocurrency, to lead the U.S. Securities and Exchange Commission.

Bitcoin has been struggling to break through the $100,000 barrier for the past two weeks, with the rally being fueled by optimism around Trump’s election. Despite this, profit-taking has hindered the price from surpassing this key level. Historical trends suggest that Bitcoin may need several attempts to break the psychological barrier, as noted by CoinDesk senior analyst James Van Straten.