Pseudonymous market analyst HornHairs has noted that Bitcoin has seen its largest Coinbase premium in two months.

This indicates that the current rally is primarily driven by spot buying.

The Coinbase premium measures the difference between the price of the largest cryptocurrency on Coinbase and Binance.

When Bitcoin has a higher price on the largest US exchange, it means that US investors are mainly responsible for buying pressure.

Moreover, it is worth noting that spot-driven rallies are considered to be much safer compared to leverage-driven ones. Crypto rallies that are driven by risky and speculative derivatives products are less healthy.

As reported by U.Today, the market recently suffered from a massive selling spree initiated by Saxony, a state in the eastern part of Germany. However, the market was able to mostly absorb these sales.

Notably, spot Bitcoin exchange-traded funds (ETFs) attracted nearly $900 million during this week, displaying their best performance since May. This once again confirms that there is strong demand for Bitcoin among US buyers.

According to CoinGecko data, the leading cryptocurrency by market cap is currently changing hands at $60,019.40 after reaching an intraday high of $60,373.

Despite the substantial recovery, the “Fear and Greed” sentiment indicator is still showing “fear” with 30 points out of 100, according to its latest update.

Bulls might hope for a quick recovery following the end of Saxony’s Bitcoin sales and encouraging US macro data. However, there are also concerns about the lack of an obvious bullish catalyst that could propel prices higher.