Bitcoin Recovers as Coinbase Premium Turns Higher
The crypto market has stabilized after a sharp sell-off, with Bitcoin rebounding 12% from last Friday’s low to around $71,000. Renewed U.S. investor interest is indicated by a rising Coinbase Premium, but analysts caution that the rally is primarily driven by short covering, not fresh buying. Derivatives metrics show a decline in open interest and a positive cumulative volume delta, suggesting bearish traders are closing positions rather than new investors entering. Experts describe the rally as a technical rebound—often called a “dead-cat bounce”—following panic-driven liquidations, and note that sustainable, long-term demand has not yet materialized. Macro factors have improved slightly, with Asian equities rallying after political developments in Japan, and major tech earnings, which contributed to recent volatility, now behind the market. Analysts see potential for a broader recovery later in the year if institutional adoption rises and regulations become more favorable, but emphasize that a true trend reversal requires robust, structural demand, such as adoption by nation-states or strategic reserves.
