Can Bitcoin Price Break $88,000? Coinbase Premium Signals Growing U.S. Interest

The price of Bitcoin has somewhat cooled after an amazing surge to about $86,000 earlier this week, and it is currently trading around $84,650. Even though the recent decline points to a period of consolidation, analysts are still hopeful because institutional demand indicators are starting to show early indications of recovery. On-chain data reveals a fascinating divergence between U.S. and Asian investor activity, offering a unique lens into who’s really leading the next possible leg up in BTC.

U.S. Institutional Demand Reawakens: Coinbase Premium Shows Strength

While Bitcoin experienced a 30% correction since March, the market has shown resilience in recent days. Since it gauges the difference in Bitcoin prices between Coinbase, a U.S.-based exchange, and other foreign exchanges, the Coinbase Premium Index is an essential indicator of that resilience. Avocado Onchain, a CryptoQuant analyst, claims that the premium is forming a pattern of lower highs and higher lows, a traditional configuration that suggests a potential breakout.

Avocado points out that this trend has historically coincided with spikes in institutional buying interest. In fact, the most recent rise in the Coinbase Premium preceded Bitcoin’s surge earlier this week, providing early confirmation of U.S.-led demand. The ongoing consolidation above the $84,000 mark further supports the idea that BTC is forming a new base of support in preparation for another push higher.

Asia Lags Behind: Korean Retail Investors Show Caution

While U.S. institutions appear to be quietly accumulating, the Korea Premium Index tells a different story. This metric tracks the spread between BTC prices on Korean exchanges and the global average, offering insight into retail sentiment in Asia. Throughout 2024, the Korea Premium remained subdued, reflecting muted buying interest among Korean investors even as the Bitcoin price fell. According to Avocado, this index only began ticking upward after Bitcoin had already rallied, suggesting that Korean participation in the current market cycle is delayed, or possibly even reactive rather than proactive.

Chart 1 – Bitcoin: Coinbase Premium Gap, published on TradingView, April 18, 2025.

This divergence could signal a shift in regional market leadership. While previous bull runs saw heavy influence from Asian traders, particularly during retail-driven manias, the current momentum seems anchored in U.S. institutional accumulation. The tighter Coinbase Premium reflects this shift and could be a leading indicator for sustained recovery, assuming macroeconomic headwinds don’t derail it.

Chart 2 – Bitcoin: Korea Premium Index, published on TradingView, April 18, 2025.

Adding to the complexity is the broader global economic backdrop. Bitcoin is treading carefully as U.S.-China tensions increase and gold prices soar in a flight to safety. However, maintaining above important levels such as $84,000 would pave the way for a robust recovery, particularly if demand indicators keep rising.

What is Next for Bitcoin Price? Institutional Accumulation Could Define the Next Move

Looking ahead, analysts suggest the next few weeks will be pivotal. What is Next for Bitcoin Price? If the Coinbase Premium continues its upward compression and breaks out, it could attract further institutional interest, potentially triggering a mid-term rally toward $88K or beyond. On the other hand, continued sluggishness in Asian retail participation may slow momentum. However, this could also give U.S.-led demand more control over market direction, marking a new phase in Bitcoin’s evolving global investor profile.

Final Thoughts: All Eyes on the Coinbase Premium

Bitcoin’s modest retreat from $86,000 may be a healthy pause rather than a warning sign. With U.S. institutional demand building, as reflected in the Coinbase Premium Index, the groundwork for a longer-term recovery seems to be forming. Traders should watch on-chain divergences closely, especially premium trends, as these may offer early clues to the next big breakout.