Coinbase Premium hits record high, signaling rise in Bitcoin demand

CryptoQuant Analytics has revealed that U.S. Bitcoin demand has surged as Coinbase Premium hits a 4-month high. Spot exchanges have also experienced a one-third decline in reserves in less than a year, as 550K BTC exits crypto exchange platforms.

The analytics platform also highlighted that Bitcoin is seeing a surge in buying pressure from U.S. consumers in a key 2025 tailwind. The firm believes the U.S. BTC demand is staging a convincing comeback as the Coinbase Premium rises.

Bitcoin eyes all-time highs as market price gains momentum

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The Coinbase Premium shows the difference in price between Coinbase’s BTC/USD and Binance’s BTC/USDT pairs and is often used to gauge U.S. buyer appetite. On June 6, the metric reached $109.55, marking the largest gap between the two markets since February 3.

CryptoQuant analysis on June 10 revealed that the BTC market has been on an upward trend since April 21. The firm acknowledged that the Coinbase Premium was also gradually rising, indicating that buying pressure from U.S. investors continues to support the upward trend.

“This positive momentum, without signs of overheating, is a typical pattern seen in a rising cycle following a correction, suggesting optimistic movements in the cryptocurrency market in the second half of 2025.”

–Crypto Dan, On-Chain Analyst at CryptoQuant.

The analysts argued that the premium trend comes as U.S. institutional demand also returned after a momentary unwinding due to BTC/USD retesting $100,000 support. 

Additional analysis revealed that BTC is continuing its upward momentum despite its current price level being just below its all-time high. However, the analysis suggests that the BTC price won’t surpass its current ATH anytime soon.

At the time of publication, Bitcoin exchanged hands for around $109,700, a 4.10% increase in the last 7 days.

CryptoQuant analysts argued that the current rally is unfolding in a much quieter market environment than the previous one when the digital asset recorded a new all-time high price. The analysts also noted that the 30-day moving average of Binary CDD has been declining even as prices rise, suggesting that long-term holders are still choosing to hold rather than sell.

The CryptoQuant analysts argued that although the Coinbase Premium continues to rise, the Korea Premium Index remains relatively low, indicating a lack of retail-driven mania. The analysts also highlighted that the MVRV ratio is gradually increasing without showing the sharp spikes typically seen during overheated market conditions.

Spot exchange reserves drop as ETFs stack up

The surge in BTC demand is also reflected in the growth of BlackRock’s iShares Bitcoin Trust (IBIT), the largest U.S. spot Bitcoin exchange-traded fund (ETF), which reached $70 billion in assets under management.

ETF analyst Eric Balchunas said IBIT’s milestone was roughly five times faster than the previous record holder, SPDR Gold Shares (GLD), which took 1,691 trading days to reach $70 billion AUM compared to IBIT’s 341 days. 

At the time of publication, IBIT holds approximately $71.9 billion AUM. The ETF ended its 31-day inflow streak on May 30 with its largest daily outflow of $430.8 million.

CryptoQuant analysts noted that declining exchange reserves are a catalyst for BTC price strength. The analyst argued that every BTC rally results from unseen preparation. The analyst believes that as the digital asset price marches toward $110,000, investors are pulling Bitcoin off exchanges “slowly but surely, with steady determination.”

The CryptoQuant data suggests that since July 2024, over half a million coins have left spot exchanges alone. Crypto exchanges held around 1.55 million BTC as of July, but now only 1.01 million BTC remain. The trend further solidifies the bullish sentiments of the market, revealing a strong buy-and-hold pattern among retail investors.

The market analysts highlighted that as BTC on exchanges decreased, the digital asset’s price moved in the opposite direction. The supply on exchanges shrinks because retail traders withdraw, and demand grows since more investors buy and fewer sell.

CryptoQuant analysts also made a case that Bitcoin is no longer seen as a speculative asset but is becoming digital gold, where people are not buying for short-term gains but for the future.

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