2 Strong Indicators US Investors are Returning to Bitcoin

The landscape around bitcoin after the last FOMC meeting for 2024 in the United States turned upside down, with local investors pulling funds from ETFs and the Coinbase Premium index falling to annual lows.

However, on-chain data shows that US investors are back on the BTC front, with massive accumulations.

ETFs demand returns

During the aforementioned meeting at the highest levels of the US central bank, Fed Chairman Jerome Powell warned that there could be fewer or even no rate cuts in 2025 due to the increase in the inflation US investors immediately reacted and started pulling funds out of riskier assets like BTC and crypto.

Over the next four trading days, they withdrew more than $1.5 billion from US-based Bitcoin exchange-traded funds. December 26 was the only day in the green, as December 27, 30 and January 2 saw more net outflows. Even BlackRock’s IBIT, the world’s largest Bitcoin ETF, posted negative records.

However, that changed on Friday, January 3rd. Total net receipts for the day soared to $908.1 million, according to FarSide data. IBIT was actually second at $253.1 million, behind Fidelity’s FBTC at $357 million. Ark Invest’s ARKB also had a strong presence, attracting $222.6 million. This became the best day in terms of net receipts since November 21.

Coinbase Premium Index

The other metric that shows the overall behavior of US investors towards bitcoin and crypto is the Coinbase Premium Index, which measures the BTC price difference between Coinbase and Binance. When it soars into positive territory, that means US-based investors are piling in heavily, and vice versa.

The metric recently fell to a reported annual low, which coincided with rising ETF outflows following the FOMC meeting. Now, however, CryptoQuant data shows that it has returned to neutral territory almost immediately after publishing it. This shows that “US and institutional investor sentiment is back.”

Coinbase Premium Bitcoin Index. Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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