Bitcoins [BTC] The latest recovery revealed a widening gap between rising blockchain activity and the US spot market’s weakening conviction. Previous rallies have often strengthened as demand for Coinbase increased alongside broader ecosystem participation and institutional accumulation.
More recently, however, Coinbase Premium weakened to negative $66.8 even as Bitcoin neared $77,200. Before May, the premium had only fallen to negative $62.6, while Bitcoin was trading closer to $68,000.
That difference suggested offshore demand for Binance continued to outpace U.S. buying pressure despite higher prices. Basic network revenue also rose to nearly $972,000, surpassing the late-March level of nearly $917,000, due to stronger blockchain use.
This imbalance implied that Bitcoin’s rally still lacks broad organic spot participation, potentially leaving momentum vulnerable if demand for offshore liquidity and derivatives begins to weaken further.
Bitcoin demand growth is collapsing
Bitcoin’s broader recovery weakened as aggregate demand fell sharply below the neutral zero area in May. Earlier momentum had already pushed demand growth above 150,000 BTC before it quickly collapsed back into negative territory.
The reversal was significant because similar demand pullbacks previously aligned with sharp Bitcoin pullbacks from around $120,000 to lower support regions.
The price also stabilized near the broader $77,000 zone as aggregate demand continued to decline, reinforcing weakening participation under the recovery structure. The futures-driven momentum initially fueled upward expansion through aggressive short liquidations and leverage positioning.
However, spot accumulation could not sustain the breakout later as organic buying pressure subsided.
The widening gap between price stability and collapsing demand indicated that Bitcoin’s rally remains structurally vulnerable amid deteriorating market participation.
Bitcoin’s recovery is weakening amid declining spot market demand
Bitcoin’s latest recovery revealed waning conviction amid weakening spot market demand and slowing institutional participation in major markets. Previous rallies have relied heavily on derivatives momentum and the aggressive expansion of short liquidations to continue the uptrend.