Bitcoin Soars to $99K as Coinbase Premium Surge Highlights Strong U.S. Buying Activity

Bitcoin (BTC) experienced a sharp rally on Wednesday afternoon, pushing the price closer to $100,000 after trading within a tight range for most of the day. After briefly dipping below $95,000, the price surged nearly 5%, reaching a high of $99,177, according to CoinDesk data. This move marked a 3.2% increase in the last 24 hours, outpacing the broader market, with the CoinDesk 20 Index gaining just 1.3%.

The surge coincided with a noticeable increase in the “Coinbase Premium,” a key indicator of Bitcoin demand among U.S. investors. During the price spike, Bitcoin was trading as much as $300 higher on Coinbase compared to Binance, suggesting that the rally may have been driven by strong interest from American investors.

The Coinbase Premium measures the price difference between spot Bitcoin on Coinbase, which is favored by U.S. institutional investors, and Binance, an exchange more popular with international retail traders. This price divergence highlights the growing demand for Bitcoin among U.S.-based investors.

The rally occurred alongside comments from Federal Reserve Chair Jerome Powell, who referred to Bitcoin as a digital version of gold and suggested it competes with gold rather than the U.S. dollar. Additionally, Bitcoin’s price surge came amid news of Paul Atkins, a crypto-friendly figure, being nominated by Donald Trump to lead the Securities and Exchange Commission.

Bitcoin has been testing the $100,000 level for the past two weeks, with the rally fueled by optimism surrounding Trump’s election. However, profit-taking has kept the price from breaking through. Historical trends suggest that Bitcoin may need multiple attempts to overcome this psychologically significant barrier, as noted by CoinDesk senior analyst James Van Straten.