Bitcoin hit a new all-time high – here’s what’s driving it

Happy all-time high day, y’all! Bitcoin hit $114K for the first time ever!

*Confetti, champagne popping, people cheering, fireworks, “All I Do Is Win” playing, an elephant trumpeting*

*… wait what*

*uhh, anyways*

Why’s it pumping?

CryptoQuant analyst Burak Kesmeci says it’s because of US buyers.

He thinks so because when BTC hit $112K, the Coinbase Premium Gap jumped to 42 points.

“🤨 Wtf does that mean?” – glad you asked:

The Coinbase Premium Gap is the price difference between Bitcoin on Coinbase and on Binance.

And at that moment, people on Coinbase were paying $42 more per Bitcoin than on Binance.

Now:

👉 Coinbase is one of the most popular exchanges in the US;

👉 Binance, on the other hand, is more global.

So when prices on Coinbase climb faster than on Binance – and the gap gets bigger – it’s a sign that US demand is growing.

Which matters because strong US demand usually keeps the rally going.

And that’s not all.

10xResearch pointed out that for weeks, Bitcoin was mostly moving sideways.

During that time, a lot of retail investors stayed out of the market because it didn’t look exciting.

But at the same time, big investors were quietly buying through ETFs – about $15B worth. That steady buying didn’t make the price jump yet, but it built up strong demand.

Now, that demand is finally showing – Bitcoin started climbing to new highs.

And the traders who sat out earlier are now rushing to buy in, which could push the price even higher.

Oh, and don’t sleep on Ethereum.

According to Swissblock, investors are actively pumping money into ETH, and there’s growing interest in Ethereum-related projects.

Plus, it started outperforming Bitcoin:

👉 ETH is up by over 14% so far this month;

👉 While BTC is only up by around 5%.

And if this trend holds over the next few days – like Swissblock expects – it could be a sign of the start of altseason 👀