Bitcoin’s rebound from last week’s steep decline has coincided with a modest recovery in a key indicator of U.S. demand, though the improvement remains tentative.

After tumbling toward $60,000 in its sharpest drop since the FTX-era turmoil of 2022, bitcoin (BTC) staged a strong bounce, climbing back toward the $70,000 level. At the same time, the Coinbase Bitcoin Premium Index has moved noticeably higher from extreme lows.

The index, which tracks the price difference between bitcoin on Coinbase and the broader global average, rose from approximately -0.22% during the height of the selloff to around -0.05% by Tuesday. While still slightly negative, the shift suggests that U.S.-based investors began re-entering the market as forced selling pressure eased.

Because Coinbase is widely regarded as a barometer for institutional and dollar-based flows, a deep negative premium often reflects aggressive U.S. selling or investor caution. The rebound toward neutral territory indicates that some buyers saw value at lower prices once volatility began to stabilize.

Even so, the premium has not crossed into positive territory — a level that historically aligns with sustained accumulation and a clearer return of risk appetite among U.S. funds. For now, the data points to selective dip-buying rather than a broad-based revival in confidence.

Broader market activity reinforces that restrained outlook. According to Kaiko, aggregate trading volumes across major centralized exchanges remain well below the peaks seen in late 2025. Spot market volumes continue to show gradual erosion rather than a decisive resurgence in demand.

In thin liquidity conditions, prices can snap higher quickly once selling dries up. However, without consistent follow-through from buyers, such rallies can prove fragile.

Bitcoin is currently trading just below $70,000, up more than 15% from its recent intraday low, though it remains more than 10% lower over the past week.