Bitcoin’s price rose towards $85,000 amid increasing buying interest. The Bitcoin Coinbase Premium Index shows improvement, signalling potential recovery in U.S. spot demand. Increased selling pressure is noted among retail investors, while long-term holders remain stable. MicroStrategy continues to accumulate Bitcoin, reflecting institutional confidence in the asset.
Bitcoin Price Movement and Market Sentiment
Recently, Bitcoin’s price exhibited a brief recovery towards $85,000, attributed to increasing buying interest despite a general trend of bearish pressure. The Bitcoin Coinbase Premium Index, a critical metric reflecting market sentiment, shows signs of improvement, edging towards positive territory after significant negativity throughout April. This shift could signal a resurgence in spot demand within the United States, often viewed as a bullish market indicator.
Understanding the Coinbase Premium Index
The Bitcoin Coinbase Premium Index measures the price discrepancy of Bitcoin on Coinbase compared to other major exchanges. Highlighted by analyst Daan Crypto Trades, this index’s gradual movement towards positivity suggests a potential increase in institutional interest and capital inflows from U.S. retail traders. This development follows Bitcoin spot Exchange-Traded Funds (ETFs) outflows and notable acquisitions, notably by MicroStrategy, which recently acquired an additional 3,459 BTC at a cost of $285.8 million.
MicroStrategy’s Bitcoin Holdings
As of April 13, 2025, MicroStrategy’s Bitcoin holdings stand at 531,644 BTC, representing an investment of $35.92 billion, with an average purchase price of $67,556 per Bitcoin. The recent purchase valued at $82,618 yields an 11.4% return Year-to-Date (YTD), reflecting strong confidence in Bitcoin despite its price fluctuations. Although the Coinbase Premium Index is typically a lagging indicator, its current flat trend merits monitoring for market strength or weakness.
Retail Activity vs. Long-Term Holders
The recent 15-day period has seen increased selling pressure among Bitcoin investors, particularly amongst retail and mid-sized holders, surpassing the selling activities of whales. Data indicates that short-term holders transferred an average of 930 BTC to exchanges, while long-term holders maintained stability, with only about 529 BTC being moved daily. This trend suggests that the market correction stems from anxiety among mid-tier and short-term investors rather than a mass exit by experienced investors.
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