Bitcoin’s [BTC] latest recovery revealed a widening split between rising blockchain activity and weakening U.S. spot-market conviction. Earlier rallies often strengthened as Coinbase demand rose alongside broader ecosystem participation and institutional accumulation.
More recently, however, Coinbase Premium weakened to negative $66.8 even with Bitcoin near $77,200. Before May, the premium had only dipped to negative $62.6 while Bitcoin traded closer to $68,000.
That divergence suggested offshore demand on Binance continued outpacing U.S.-based buying pressure despite higher prices. Base network revenue also climbed to near roughly $972,000, surpassing late-March levels near $917,000 due to stronger blockchain usage.
That imbalance implied Bitcoin’s rally still lacks broad organic spot participation, potentially leaving momentum vulnerable if offshore liquidity and derivatives demand begin weakening further.
Bitcoin demand growth collapses
Bitcoin’s broader recovery weakened once total demand sharply reversed beneath the neutral zero region during May. Earlier momentum had already pushed demand growth above 150,000 BTC before rapidly collapsing toward negative territory again.
The reversal mattered because similar demand breakdowns previously aligned with sharp Bitcoin pullbacks from roughly $120,000 toward lower support regions.
Price also stabilized near the broader $77,000 zone while total demand continued falling, reinforcing weakening participation beneath the recovery structure. Futures-driven momentum initially fueled upside expansion through aggressive short liquidations and leverage positioning.
However, spot accumulation later failed to sustain the breakout once organic buying pressure weakened.
Growing divergence between price stability and collapsing demand suggested Bitcoin’s rally remains structurally fragile beneath deteriorating market participation.
Bitcoin recovery weakens beneath fading spot demand
Bitcoin’s latest recovery revealed fading conviction beneath weakening spot demand and slowing institutional participation across major markets. Earlier rallies had already depended heavily on derivatives momentum and aggressive short-liquidation expansion for upside continuation.