The recent surge in bitcoin (BTC) demand in the United States has been a topic of interest following the comments made by Federal Reserve chair Jerome Powell at the Jackson Hole symposium. While BTC experienced a rally driven by the increasing investor interest in the U.S., the overall demand growth for Bitcoin has remained relatively low and negative in recent weeks.
The spike in the Coinbase Premium to 0.11%, its highest level since July, indicates a surge in demand from U.S. investors compared to exchanges outside the country. This movement of BTC to Coinbase is typically observed during bull markets and is a positive signal for an upward price trend in bitcoin.
The Inter-exchange Flow Pulse (IFP) metric, which measures the one-year cumulative sum of BTC net flows between Coinbase and other exchanges, has also rallied. This suggests that bitcoin is flowing into the U.S.-based crypto platform due to the price premium and increased demand in the U.S. market.
In addition to increased demand in the U.S., the perpetual futures market has seen a rise in Open Interest (OI) by roughly 10,000 BTC, reaching 276,000 BTC. This surge indicates that traders are opening new long positions, with buy orders surpassing sell orders.
Price Movement and Profit-Taking Behavior
The price of bitcoin saw a 6% increase from $60,000 to $65,000, its highest level since August 2, amidst the heightened demand in the U.S. However, despite the price rally, investors did not engage in significant profit-taking, with realized profits amounting to $536 million, significantly lower than previous market tops this year.
Challenges Ahead for Bitcoin Market
The decline in Apparent bitcoin Demand 30-day growth from 496,000 BTC in early April to a negative state of 36,000 BTC highlights a concerning trend. The Apparent Demand is essential for price recovery and new highs in the crypto market, indicating that there is a need for increased demand to drive a full market recovery.
Overall, while there has been a noticeable increase in bitcoin demand in the U.S. market, there are challenges ahead in sustaining this growth and driving the crypto market towards a more bullish trend. Investors and traders will need to closely monitor the market dynamics and demand indicators to gauge the potential for future price movements and market recovery.
