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Rise in Coinbase Premium as BTC Reaches Unprecedented Heights: An Analysis

Bitcoin (BTC) has reached new all-time highs, hitting $112,000 on some crypto exchanges. This rally was largely driven by robust BTC purchases in the United States, as evidenced by the rise in the Coinbase Premium Index, which tracks BTC demand among U.S. investors. The recent surge to 42 points indicates that U.S. investors on Coinbase paid $42 more per BTC than those on Binance, suggesting substantial demand from U.S.-based investors.

Concurrently, the U.S. spot exchange-traded fund (ETF) market has seen significant inflows, recording only one day of outflows in the past 21 trading days. Additionally, more corporate treasuries are adopting Bitcoin strategies, indicating growing institutional interest. Despite potential negative macroeconomic conditions, analysts remain bullish about bitcoin's short-term outlook, particularly if ETF and institutional demand remain strong.$BTC