In the wake of Federal Reserve chair Jerome Powell’s comments at the Jackson Hole symposium, the demand for bitcoin (BTC) in the United States has been on the rise. This surge in interest has been reflected in the spike in the Coinbase Premium, reaching its highest level since July at 0.11%. The increase in demand from U.S. investors has led to the flow of BTC from non-U.S. trading platforms to Coinbase, indicating a shift towards U.S.-based exchanges.
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 seen a significant increase. This suggests that bitcoin is flowing into U.S.-based exchanges in response to the price premium and growing demand in the U.S. This movement of BTC is typically observed during bull markets, signaling potential upward momentum in bitcoin’s price.
Furthermore, bitcoin demand in the perpetual futures market has seen a rise alongside Open Interest (OI) climbing by approximately 10,000 BTC to 276,000 BTC. This uptick in OI indicates that traders are opening new long positions, with buy orders outnumbering sell orders. Despite the increased demand, investors have not engaged in substantial profit-taking, with realized profits amounting to $536 million – significantly lower than peak levels seen earlier this year.
However, the overall Bitcoin demand growth has remained at low levels and even turned negative in recent weeks. The Apparent bitcoin Demand 30-day growth has plummeted from 496,000 BTC in early April to a negative state of 36,000 BTC. This metric, which calculates the difference between the daily total bitcoin block subsidy and the daily change in the number of BTC not moved in a year or more, is crucial for the crypto market’s recovery.
CryptoQuant emphasizes that an increased apparent bitcoin demand is necessary for prices to fully recover and rally to new highs. While the surge in U.S. investor interest has provided a boost to bitcoin’s price and trading volume, sustained growth in demand is essential for the market to see a prolonged upward trend. As the crypto market continues to evolve, monitoring bitcoin demand dynamics, particularly in the U.S., will be key to gauging the future trajectory of prices and market sentiment.
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