Bitcoin demand in the U.S. continues to rise, reflected by an increase in the Coinbase Premium and pushing bitcoin prices above $100,000.
Positive Trends in Coinbase Premium
The Coinbase Premium has turned positive for the first time since December 2024, indicating renewed demand from U.S. investors. This occurred after the approval of U.S.-based spot bitcoin ETFs, which suggests a dominance of buying pressure, according to CryptoQuant analyst Burak Kesmeci.
Supporting Trends in Liquidity Tightening and Miner Behavior
Bitfinex analysts noted that bitcoin's sell-side liquidity is rapidly shrinking, supporting the uptrend. Liquidity has sharply decreased from 41 months in October to just 6.6 months now. There is also a noted decline in miner selling activity, fostering further bitcoin price increases.
Rising Miner Profitability
According to a JPMorgan report, bitcoin miner profitability rose for the second consecutive month. In December 2024, miners earned an average of $57,100 per exahash per second, 10% more than in November. However, profitability metrics remain below pre-halving levels.
The resurgence of interest in bitcoin among U.S. investors and the reduced selling pressure from miners contribute to its ongoing price increase. However, mining profitability has yet to reach pre-halving levels.
