With Federal Reserve chair Jerome Powell’s recent comments at the Jackson Hole symposium, the demand for bitcoin (BTC) in the United States has seen a notable increase. This surge in interest has been evident through various metrics such as the Coinbase Premium reaching its highest level since July at 0.11%. This increase in demand has led to BTC flowing from non-U.S. trading platforms to Coinbase, pointing towards a growing interest from U.S. investors.
The Inter-exchange Flow Pulse (IFP) metric, which indicates the one-year cumulative sum of BTC net flows between Coinbase and other exchanges, has also seen a significant rally. This movement of assets into U.S.-based platforms like Coinbase has been triggered by the rising price premium and enhanced demand in the U.S. Furthermore, the perpetual futures market has shown an increase in Open Interest, with traders opening new long positions and buy orders surpassing sell orders.
The surge in Bitcoin demand within the U.S. market has resulted in a 6% price uptick, with BTC climbing from $60,000 to $65,000, marking its highest level since August. Despite this bullish trend, investors have refrained from engaging in massive profit-taking activities. Realized profits have only amounted to $536 million, significantly lower than the figures observed at previous market peaks this year.
Despite the localized increase in Bitcoin demand in the U.S., the overall Bitcoin demand growth remains at low levels and has even dipped into negative territory 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 indicates a concerning trend that needs to be addressed for the market to witness sustained recovery and potentially reach new highs. CryptoQuant emphasizes the necessity for heightened apparent Bitcoin demand to drive prices towards a full recovery.
While the U.S. market has shown a notable surge in Bitcoin demand, the broader crypto market continues to face challenges in overall demand growth. It is crucial for market participants to monitor these trends closely and to address the underlying issues to foster a healthier and more sustainable market environment.
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