Bitcoin Hits $86K But Fails Key Demand Test

Bitcoin has pushed through $85,000 on Monday, marking its latest leg higher and reaching levels last seen in late January. The crypto asset has gained 6% over the past 24 hours.

However, data suggests that this recovery may not be driven by strong US spot demand. According to CryptoQuant's Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase's USD market and Binance's USDT market, the premium has turned negative again.

A positive reading usually indicates stronger buying activity from US investors, while a negative reading suggests weaker demand or relatively stronger selling pressure on Coinbase. Currently, the index is at -0.02, with BTC trading at around $81,500.

Experts are debating whether crypto winter has finally ended, and some believe that the market has entered 'crypto spring.' Bitwise CIO Matt Hougan expects the current cycle to develop into the 'strongest and longest-running' bull market in the industry's history. Strategy has also resumed its Bitcoin purchases after a three-week pause, buying 950 BTC for $75.7 million at an average price of $79,670.