The Coinbase Premium Index (CPI) flipped positive for the first time since mid-December 2024, indicating renewed buying interest in bitcoin from U.S. investors, according to analysis from CryptoQuant.
“Since the approval of U.S.-based spot bitcoin ETFs, the behavior of U.S. investors has been a critical indicator for market sentiment,” noted CryptoQuant analyst Burak Kesmeci. The positive CPI reflects increased buying pressure, particularly from institutional investors who utilize Coinbase for significant transactions. This shift was underscored by a single block outflow of 4,012 bitcoin from Coinbase on Monday evening.
Bitfinex analysts also observed easing downward pressure on bitcoin, which had pushed the cryptocurrency to a local low of $91,000 in late December. They highlighted a sharp drop in the Liquidity Inventory Ratio (LIR)—a metric that measures how long current supply can meet demand—from 41 months in October to just 6.6 months now. This tightening supply mirrors patterns observed during strong market rallies earlier in 2024, signaling increasing demand.
Miner activity, a significant factor influencing bitcoin’s spot market, is also undergoing a shift. Following the 2024 halving event that reduced mining rewards, many miners sold reserves to fund operations and upgrades. However, this selling pressure appears to be diminishing as 2025 begins.
“Bitcoin flows from miners to exchanges are declining rapidly,” Bitfinex analysts said, suggesting that miners are increasingly holding onto their bitcoin instead of selling.
These developments point to growing confidence and demand for bitcoin as supply constraints tighten, potentially setting the stage for further market momentum.