Demand for Bitcoin in the US is increasing, but there is a problem

Demand for bitcoin (BTC) in the United States has been rising following comments by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium last week. However, this increase has not spread to the rest of the crypto market.

According to a CryptoQuant report, BTC recovered on the back of increased investor interest in the US, but global demand growth for Bitcoin is at low levels and has remained negative for the past few weeks.

Bitcoin rallies amid surge in demand

Increased demand for Bitcoin from US investors was evident in the rise of Coinbase Premium, which rose to 0.11%, its highest level since July. The increase in this metric indicates that the local trading platform is seeing higher demand from US investors than exchanges outside the country.

CryptoQuant said it was a sign that BTC had begun to flow from non-US trading platforms to Coinbase, a move commonly seen during bull markets and an indication of an upward trend in the price of bitcoin.

The Inter-exchange Flow Pulse (IFP) metric, which measures the one-year cumulative sum of net BTC flows between Coinbase and other exchanges, also rebounded as an indication that the asset was flowing to the US crypto platform in response to the higher price and higher demand in the US

In addition, the demand for bitcoins in the perpetual futures market increased along with the Open Interest. OI increased by approximately 10,000 BTC to 276,000 BTC, indicating that traders were opening new long positions and that buy orders were dominating sell orders.

Apparent demand is still negative

Amid rising demand for Bitcoin in the US, the price of the underlying posted a 6% rise from $60,000 to $65,000, its highest level since August 2. This was seen in realized profits worth $536 million, a far cry from the multi-billion dollar figures recorded at the local market’s highs this year.

Additionally, the 30-day apparent demand growth for bitcoin has declined from 496,000 BTC in early April to a negative 36,000 BTC. Apparent demand is the difference between the total daily bitcoin block allowance and the daily change in the number of BTC that have not moved in a year or more.

CryptoQuant insists that the crypto market needs increased apparent demand for bitcoins before prices can fully recover and hit new highs.

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