Bitcoin (BTC) surged dramatically on Wednesday, pushing toward the $100,000 mark after spending much of the day in a tight trading range. The cryptocurrency briefly fell below $95,000, only to rally nearly 5%, reaching a high of $99,177, according to CoinDesk data. In the past 24 hours, Bitcoin gained 3.2%, outperforming the broader CoinDesk 20 Index, which saw a more modest 1.3% increase.
This price action coincided with a sharp rise in the “Coinbase Premium,” a key indicator of Bitcoin demand from U.S. investors. During the surge, Bitcoin traded as much as $300 more expensive on Coinbase compared to Binance, suggesting the rally was largely driven by strong demand from American buyers.
The Coinbase Premium tracks the price difference between Bitcoin on Coinbase, which is popular among U.S. institutions and large investors, and Binance, which has a strong retail investor base globally. The widening gap indicates that U.S. traders are driving much of the recent price movement.
The rally came amid Federal Reserve Chair Jerome Powell’s comments on Bitcoin, where he likened it to a digital form of gold, positioning it as a competitor to the precious metal rather than to the U.S. dollar. The surge also followed the news of Donald Trump nominating Paul Atkins, a crypto-friendly figure, to lead the U.S. Securities and Exchange Commission.
Bitcoin has been testing the $100,000 level for the past two weeks, driven by market optimism surrounding Trump’s election. However, profit-taking has limited its ability to break through. Historical patterns suggest Bitcoin may require multiple attempts to overcome the psychological resistance of $100,000, as highlighted by CoinDesk senior analyst James Van Straten.
