Bitcoin’s drop to $90,742 on Nov. 26 may have alarmed some investors, but signs suggest this level could mark a local bottom. The cryptocurrency has rebounded to $95,000, while the total crypto market cap grew by 7.3% to $3.32 trillion between Nov. 26 and 28. Market indicators now hint at renewed investor optimism, potentially paving the way for Bitcoin’s march toward $100,000.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
U.S. Demand for Bitcoin Returns
The Coinbase Premium Index, a measure of Bitcoin demand on the largest U.S. exchange, saw a dramatic turnaround. After a decline during Bitcoin’s price drop, the index rose to 0.091, signaling renewed interest from U.S. retail investors. According to Julio Moreno, CryptoQuant’s head of research, “Bitcoin demand growth is accelerating again after the recent price correction.” Moreno’s data highlights demand expansion, which could drive prices higher.
Spot Bitcoin ETF Inflows Rebound
Renewed interest isn’t limited to retail investors. Spot Bitcoin ETFs in the U.S. recorded a daily net inflow of $103 million on Nov. 26, reversing two days of $558 million in outflows. Notably, the Bitwise Bitcoin ETF led with $48 million in inflows, reflecting growing institutional appetite.
Exchange Balances Hit Six-Year Low
Bitcoin balances on exchanges have dropped to 2.4 million BTC, the lowest since 2018. This signals reduced sell pressure, as investors move funds into self-custody wallets. With fewer coins available for selling, Bitcoin’s price could face less resistance as it climbs.
At the time of writing, Bitcoin is sitting at $95,374.54.
