Bitcoin’s U.S. demand indicator shows early signs of recovery following the recent crash.

A key gauge of U.S. demand is flashing tentative signs of improvement as bitcoin rebounds from last week’s steep selloff, though the shift stops short of signaling a full return to risk appetite.

Bitcoin (BTC) has rallied sharply after tumbling toward the $60,000 mark, and that recovery has coincided with a notable move in the Coinbase Bitcoin Premium Index. The metric, which measures the price difference between bitcoin on Coinbase and the broader global average, has rebounded from around -0.22% at the peak of the downturn to approximately -0.05% as of Tuesday.

Although the index remains in negative territory, the move toward neutral suggests U.S.-based buyers stepped in as prices stabilized and forced liquidations subsided.

Coinbase is commonly viewed as a bellwether for institutional and dollar-denominated flows. A deeply negative premium typically reflects aggressive selling or a lack of participation from U.S. investors. The recent improvement implies that some market participants saw opportunity at lower levels, particularly following bitcoin’s most rapid drawdown since the FTX-driven turmoil of 2022.

However, the premium has yet to flip positive — a development that has historically aligned with sustained accumulation and stronger conviction among U.S. funds. For now, the data points to opportunistic dip-buying rather than a decisive shift back to a risk-on environment.

Broader market structure indicators reinforce that cautious view. According to Kaiko, aggregate trading volumes across major exchanges remain significantly below their late-2025 peaks. Spot market activity continues to trend lower overall, suggesting participation is gradually thinning rather than accelerating.

In such an environment, prices can rebound quickly once selling pressure eases, but the lack of robust liquidity leaves the market exposed to renewed volatility if buying interest fails to build.

Bitcoin is currently trading just below $70,000, up more than 15% from its intraday lows, though it remains over 10% lower on the week.

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