Coinbase premium just dropped a huge signal for Bitcoin’s price to hit 30,000

Bitcoin's price saw a slight recovery on Tuesday, following a recent 7% dip from its all-time high, indicating a resurgence of investor interest in the cryptocurrency. US investors are notably increasing their Bitcoin holdings, even after a 4% price drop last week, which was accompanied by a $9 billion selloff and geopolitical uncertainties. This uptick in demand from US investors is observable through the Coinbase Bitcoin premium gap, a metric tracked by market data platform CryptoQuant. The positive shift in the Coinbase premium suggests a growing demand from US buyers, reinforcing analysts' optimistic outlook on Bitcoin's long-term price potential. Analysts at TeraHash, a Bitcoin yield protocol, project Bitcoin could reach between $130,000 and $150,000 by the end of the year, provided that exchange-traded fund (ETF) inflows remain strong and the macroeconomic environment is stable. However, future Federal Reserve decisions, particularly a potential interest rate cut in September, are seen as key determinants. A reduction in interest rates is widely considered a bullish catalyst for Bitcoin, as lower rates generally favor risk assets like cryptocurrencies and stocks. Current market sentiment, as indicated by the CME’s FedWatch tool, suggests an 88% probability of a September rate cut. James Butterfill, head of research at CoinShares, anticipates a dovish stance from the Federal Reserve, prioritizing economic growth through lower borrowing costs. Despite these positive indicators, some analysts, like those at Bitfinex, suggest Bitcoin might experience a period of consolidation, trading between $114,000 and $116,000 unless new market catalysts emerge. As of Tuesday, Bitcoin was trading just above $114,000, marking a 7% decrease from its all-time high of $122,838 recorded on July 14.

Crypto Market Movers

• Bitcoin gained 0.4% over the past 24 hours, trading at $114,747.
• Ethereum rose 3.1% in the same period, reaching $3,671.

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Source: Originally published at DL News on 5 August 2025.

Crypto Market AI's Take

The current market sentiment suggests a cautious optimism surrounding Bitcoin's price trajectory. Factors such as expected Federal Reserve interest rate cuts and continued ETF inflows are positive indicators. At Crypto Market AI, we leverage advanced AI and machine learning models to analyze these market dynamics, providing predictive insights and actionable trading strategies. Our platform aims to help users navigate the complexities of the cryptocurrency market by offering sophisticated tools for AI-powered trading and market intelligence. Understanding these market movements is crucial for making informed investment decisions, and our AI analysts are designed to help identify potential opportunities and risks in real-time.

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