Bitcoin Hits $95K, but U.S. Investors Are Sitting This Rally Out

Key Insights

• Bitcoin’s rally above $95,000 drew stronger buying from offshore markets than from U.S. platforms.

• The negative Coinbase Premium signaled continued selling pressure and weaker domestic participation.

• Regulatory uncertainty in the United States limited confidence and slowed Bitcoin demand despite rising global prices.

Bitcoin surged above $95,000 this week, reaching a two month peak during a broad global market advance. However, Bitcoin demand from the United States lagged behind overseas activity despite rising global prices. Market data showed Bitcoin trading lower on U.S. platforms, signaling weaker domestic participation during the rally.

Bitcoin Shows Uneven Demand Across Global Markets

Bitcoin climbed steadily on Tuesday, supported by strong offshore buying and higher derivatives activity. Meanwhile, prices in the U.S.-based Coinbase stayed below levels seen on global exchange Binance. As a result, the Coinbase Premium Index remained negative while Bitcoin continued moving higher overall.

The premium index measures the price gap between Coinbase and Binance trading pairs. A negative reading indicates heavier selling or limited buying pressure on U.S. platforms. Therefore, Bitcoin flows suggested capital rotated away from American markets toward international exchanges.

Source: https://x.com/cottonxbt/status/2011348299622858922?s=20

Historical patterns show U.S. demand often leads major Bitcoin upswings. That leadership appeared weaker since early November, despite improving global risk sentiment. Consequently, Bitcoin relied more on offshore traders to sustain recent price gains.

Bitcoin Premium Indicator Signals Persistent U.S. Selling

The Coinbase Premium Index peaked alongside Bitcoin prices during October’s market advance. Soon afterward, the indicator turned negative and remained below neutral levels through January. This trend reflected ongoing selling pressure or limited accumulation activity on Coinbase.

Trading volumes on Binance expanded during the same period, reinforcing the price gap. Additionally, Binance continued leading global open interest and futures activity for Bitcoin. These factors strengthened offshore influence over short term Bitcoin price movements.

Analysts often treat sustained premium shifts as indicators of regional sentiment changes. In this case, the negative spread suggested restrained U.S. engagement during the rally. Therefore, Bitcoin momentum depended less on domestic participation than in past cycles.

Bitcoin Faces Regulatory Overhang in the United States

Policy uncertainty contributed to softer U.S. demand during the latest Bitcoin rally. Lawmakers delayed key discussions on the Clarity Act, a bill addressing digital asset oversight. The Senate scheduled the markup for late January to secure broader bipartisan backing.

Earlier optimism followed regulatory signals after President Trump’s reelection in November 2024. Those developments initially strengthened Bitcoin inflows from American traders and institutions. However, legislative delays appeared to pause renewed confidence within U.S. markets.

Until clearer regulatory direction emerges, Bitcoin demand may remain uneven across regions. Global traders continued driving price action while U.S. participation stayed muted. As a result, Bitcoin’s latest advance reflected international momentum rather than domestic leadership.