The demand for bitcoin (BTC) in the United States has experienced a surge following comments made by Federal Reserve chair Jerome Powell at the recent Jackson Hole symposium. Specifically, BTC has seen a notable increase in demand from U.S. investors, as reflected in the rise of the Coinbase Premium to 0.11%, its highest level since July. This surge in the Coinbase Premium suggests that local trading platforms like Coinbase are witnessing heightened interest from U.S. investors compared to exchanges located outside the country.
One noteworthy metric, the Inter-exchange Flow Pulse (IFP), which measures the one-year cumulative sum of BTC net flows between Coinbase and other exchanges, has also experienced a rally. The increase in the IFP indicates that bitcoin is flowing into U.S.-based crypto platforms in response to the growing price premium and increased demand in the U.S. This movement is typically associated with bull markets and can be seen as a positive indicator of an upward trend in bitcoin’s price.
In addition to the increased demand for bitcoin in the U.S., there has been a surge in activity in the perpetual futures market, with Open Interest (OI) jumping by roughly 10,000 BTC to 276,000 BTC. This spike in OI suggests that traders are opening new long positions, with buy orders outnumbering sell orders. As a result of these trends, the price of bitcoin has experienced a 6% uptick, rising from $60,000 to $65,000, its highest level since early August.
Realized Profits and Apparent Demand
Despite the recent price rally, investors have not engaged in significant profit-taking, as realized profits amount to $536 million, a stark contrast to the multi-billion dollar profits seen at previous market tops. However, the 30-day growth in Apparent bitcoin Demand has declined from 496,000 BTC in early April to a negative state of 36,000 BTC. This metric, which considers 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 full recovery and rally of bitcoin prices. According to CryptoQuant, an increase in apparent bitcoin demand is necessary for prices to reach new highs in the crypto market.
The current state of bitcoin demand in the United States, as well as the interplay between various market metrics, indicates a complex and evolving landscape for the cryptocurrency. While there are positive signs of growing interest and activity in the U.S., the overall market dynamics suggest that more sustained demand is needed for bitcoin to fully recover and reach new price highs. Investors and traders should closely monitor these trends and metrics to make informed decisions in the crypto market.
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