The Coinbase Bitcoin premium, a key indicator of US institutional demand, has surged to its highest level in a week.
This movement has raised speculation that major players are once again accumulating Bitcoin.
Coinbase Premium Surge... Increase in Institutional Bitcoin Demand
The Coinbase premium tracks the price difference between BTC/USD on Coinbase and BTC/USDT on Binance exchange. A positive premium typically indicates increased demand from US institutions and high-net-worth individuals.
According to Crypto Dan, a contributor to the crypto on-chain platform CryptoQuant, the Coinbase premium gap has been positive since May, reflecting continued buying activity from US-based entities.
"Bitcoin – the direction has already shifted upward... Selling pressure from US whales and institutions has been gradually decreasing since April... and their buying pressure is currently maintained." – Crypto Dan, in a recent report.
Elsewhere, Brother Odin, a leader in the Starkware ecosystem, mentioned that market sentiment is turning greedy. Reflecting Crypto Dan's opinion, the analyst noted that the premium rise and decreased selling pressure could indicate an overall trend shifting upward.
"US institutions are in accumulation mode... The Coinbase premium tracks the BTC price difference between Coinbase (USD) and Binance (USDT)... Currently positive and rising." – Odin, wrote.
This surge in institutional demand coincides with a Fear and Greed Index of 73 at the time of writing. This index firmly places the market in the "greed" zone, which has been sustained over the past few weeks.
This indicates strong bullish sentiment but serves as a warning signal for some traders. Historically, values above 70 have preceded short-term corrections in recent market cycles.
Bitcoin Entering Price Discovery Mode?
Nevertheless, an optimistic atmosphere is maintained among on-chain analysts. One of them, BitBull, emphasized the signal strength of the premium surge.
"The Coinbase Bitcoin premium has reached its highest level in a week. This is the best signal of institutional accumulation, meaning the rally could extend. If the premium extends for a few more days, BTC will enter price discovery mode." – BitBull, suggested.
The recent surge continues a pattern reported by BeInCrypto three weeks ago. At that time, a similar rise in the Coinbase premium sent Bitcoin near local highs. That momentum now appears to be entering a correction.
This prospect of Bitcoin entering price discovery mode aligns with Crypto Dan's view. The on-chain analyst noted that establishing Bitcoin's bottom could provide an opportunity to resolve short-term overheating.
"Bitcoin is currently in a correction phase where short-term overheating is being resolved." – Crypto Dan, observed.
Dan pointed out that while correction is still possible, the overall market trajectory looks bullish heading into the second half of 2025.
The current premium rise, strong on-chain bullish signals, and new risk appetite combination have placed Bitcoin at a critical moment.
If institutional accumulation continues and retail investors follow, analysts say the market may be ready to re-enter price discovery mode, potentially testing new all-time highs.
Institutional moves on Coinbase always hint at bigger Bitcoin trends ahead.
— nordin.eth (@nordin_eth) July 3, 2025
At the time of writing, Bitcoin is trading at $111,000, up more than 2% in the past 24 hours.
