Bitcoin’s U.S. buying signal turns positive again in the wake of the downturn.

Bitcoin’s recovery from last week’s sharp downturn is being accompanied by a modest improvement in a key measure of U.S. buying interest, though the signal remains cautious rather than outright bullish.

Following a steep slide toward $60,000 — its fastest drawdown since the 2022 FTX crisis — bitcoin (BTC) has rebounded strongly. At the same time, the Coinbase Bitcoin Premium Index has moved higher, offering clues about shifting demand dynamics in the U.S. market.

The index, which compares bitcoin’s price on Coinbase to the global average, surged from roughly -0.22% at the height of the selloff to around -0.05% by Tuesday. While still slightly negative, the narrowing discount suggests that U.S.-based investors began stepping back in as prices stabilized and liquidation-driven selling cooled.

Because Coinbase is widely seen as a proxy for institutional and dollar-denominated flows, a deep negative premium typically reflects aggressive U.S. selling or investor hesitation. The recent rebound toward neutral levels implies that some buyers viewed the pullback as an opportunity.

Still, the metric has yet to turn positive — a shift that has historically coincided with sustained accumulation and a clearer return of risk appetite among U.S. funds. For now, the data points to measured dip-buying rather than broad-based conviction.

Broader trading activity reinforces that tempered view. According to data from Kaiko, aggregate volumes across major centralized exchanges remain well below the peaks recorded in late 2025. Spot market participation continues to trend lower overall, signaling gradual attrition rather than a surge in fresh inflows.

In thin liquidity conditions, prices can rebound quickly once selling pressure subsides. However, without consistent follow-through demand, such recoveries can struggle to gain traction.

Bitcoin is currently trading just under $70,000, up more than 15% from its recent intraday low, though it remains more than 10% lower on the week.