Bitcoin Coinbase Spot Price Lags Despite Large BTC Purchases – Is US Demand Weakening?

Bitcoin experienced intense volatility yesterday, surging above $88,000 before plunging below $82,000 within hours. The massive swing came as U.S. President Donald Trump announced new tariffs on what he declared “Liberation Day,” sparking fresh fear across global markets. The announcement jolted investor sentiment, sending risk assets—including Bitcoin—into sharp intraday moves. Bulls, who had been hoping for a sustained breakout, are now panicking as selling pressure appears to be building again.

The sudden reversal has rattled confidence and raised concerns that more downside may be ahead. Despite the bearish momentum, there are still glimmers of optimism among some analysts and traders. According to crypto analyst Daan, the market is showing mixed signals. Even with Michael Saylor’s recent $2 billion Bitcoin purchase and additional large buyers stepping in, a slight Coinbase Spot Discount remains in play—a sign that U.S. investor demand has yet to catch up.

Meanwhile, ETF inflows have been relatively flat in recent weeks, offering little additional momentum to the market. While the broader trend remains fragile, some believe that once institutional demand returns in force, Bitcoin could stabilize and rebound. Until then, traders remain on edge, watching for the next move in an increasingly unstable market.

Bitcoin Faces Crucial Test Between $80K and $89K

Bitcoin is currently at a critical crossroads, caught in a tight range as bulls struggle to reclaim higher ground above $89,000 while bears fail to push the price below the key $80,000 support. This standoff comes amid rising macroeconomic uncertainty and growing trade war fears, with U.S. President Donald Trump’s recent tariff announcements continuing to rattle global markets. As a high-risk and volatile asset, Bitcoin remains especially vulnerable to these developments, amplifying investor caution.

Despite this uncertainty, there are signs of resilience. Bulls have managed to defend crucial support zones, and selling pressure appears to be weakening. Many traders are closely watching for confirmation of a shift in momentum that could support a broader recovery.

Top crypto analyst Daan shared insights that paint a mixed picture. He noted that despite Michael Saylor’s recent $2 billion BTC purchase and several other large buys, a slight Coinbase Spot Discount still persists. This discount reflects softer demand from U.S.-based investors and institutions, which is also supported by relatively flat ETF flows in recent weeks.

According to Daan, a strong bullish signal would be for Coinbase’s spot price to lead again—a sign of renewed interest from U.S. buyers and ETF participants. While this is generally a lagging indicator, it can offer meaningful insight when the market starts trending. If the discount closes and spot prices rise, it could mark the return of strong demand and signal the start of a new bullish phase.

Until then, Bitcoin remains range-bound, with both bulls and bears awaiting a catalyst to break the deadlock. The next move could determine whether BTC rebounds toward new highs—or continues its slide amid mounting economic uncertainty.

Price Tests Key Support After Volatile Rejection from $88K Level

Bitcoin is trading at $83,600 after a highly volatile Wednesday, during which the price briefly surged toward $88,000 before sharply reversing. Bulls failed to hold the breakout, and BTC dropped over 8% in just a few hours, reinforcing the current consolidation range below key resistance levels. The sudden rejection highlighted the market’s fragility and the continued struggle to regain bullish momentum.

To confirm a recovery phase, Bitcoin must reclaim the 200-day moving average (MA) and exponential moving average (EMA), both of which are currently around the $86,500 level. A decisive move above this zone would be a strong signal that bulls are regaining control and could push BTC toward retesting the $90,000 mark.

However, if BTC fails to reclaim these levels soon, the risk of further downside remains high. A break below the $81,000 support level would likely trigger increased selling pressure and potentially open the door to a deeper correction. With macroeconomic uncertainty and ongoing trade war fears still weighing on investor sentiment, Bitcoin’s next move remains highly uncertain — and critical in defining the direction for the weeks ahead. Bulls must act quickly to prevent a deeper slide and restore confidence in the market.

Featured image from Dall-E, chart from TradingView