After testing $90,000 multiple times earlier this week, Bitcoin (BTC) broke above the threshold during morning U.S. trading hours on Wednesday. After breaking above it, the price continued to rise rapidly, reaching $93,000.
Bitcoin surged past $90,000 as U.S. traditional markets opened at 9:30 a.m. (CoinDesk Indices)
The breakout came as US traditional markets opened at 9:30 a.m. ET, indicating strong demand from US investors that pushed prices higher.
Bitcoin's Coinbase Premium, a key indicator of demand from the U.S., rose to 0.2, its highest level since April, according to CryptoQuant data, indicating strong buying pressure from U.S. users.
The index measures the difference in the price of Bitcoin on Coinbase, popular with US investors and institutions, compared to the price on Binance, the largest global exchange by volume.
While it’s unclear exactly what type of investors are buying, U.S. spot Bitcoin ETFs started the day with strong volume . Shares of the BlackRock iShares Bitcoin Trust ETF (IBIT), the largest spot ETF with $40 billion in assets, traded about $1.2 billion in the first hour of trading, making it the fourth most traded product among all ETFs, according to Barchart data.
At press time, Bitcoin was down slightly and was trading around $92,200, up nearly 7% over the past 24 hours, leading the CoinDesk 20 Index's 3.5% gain. Ethereum (ETH) and Solana (SOL) were also up 1.6% and 2.7% respectively over the same time period.
Spot buying fuels gains
Cumulative spot volume (CVD) — defined as the net difference between buy and sell volume — continues to show strong inflows with the majority of net volume coming from buyers. Each time there is a spike in CVD, the price of the asset increases, suggesting that the rally is more sustainable as the buying is coming primarily from the spot market rather than the Futures Contract market, according to CoinDesk analyst James Van Straten.
