Coinbase Premium Index Indicates Strong US Demand as Bitcoin Reaches New Heights

Bitcoin has recently broken its previous record, soaring past $75,000 as Donald Trump prepares to assume the presidency once again. This surge is seen as a significant victory for the cryptocurrency industry.

Coinbase Premium Index Surge

The Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase and Binance, has shown a positive spike. According to CryptoQuant, the index turned positive during early Asian trading hours on Wednesday, reaching 0.06, its highest level since September 14. Although it has since decreased to 0.04, this premium suggests strong buying interest from US traders and institutional investors, potentially supporting a more sustainable Bitcoin rally.

Optimism for Bitcoin's Future

In a recent note to investors, QCP Capital expressed confidence in Bitcoin's bullish momentum as the market heads into 2025. The firm noted that Bitcoin hit an all-time high of $75,000 after surpassing its previous record of $73,500 set on March 14. Historically, Bitcoin has seen significant rallies following election cycles, and analysts expect this trend to continue.

“The crypto market has been on fire, and we expect this bullish momentum to hold strong as we head into 2025.”
— QCP Capital

Impact on Traditional Markets

Trump's victory has also affected traditional markets. The US dollar increased by 1.2%, reaching its highest level since July at 105. Bond yields have risen in anticipation of stronger economic growth and increased fiscal spending. The 10-year Treasury yield rose by 15 basis points, while the 2-year yield increased by 8 basis points, reflecting growing investor optimism about the economic outlook.