The demand for bitcoin (BTC) in the United States has been on the rise recently, particularly following comments made by Federal Reserve chair Jerome Powell at the Jackson Hole symposium. This increased interest in BTC from U.S. investors has been reflected in various metrics, such as the Coinbase Premium, which surged to 0.11%, its highest level since July. The rise in this premium suggests that there is greater demand for Bitcoin from U.S. investors compared to those outside the country.
One of the key metrics pointing towards the increase in Bitcoin demand from the U.S. is the Inter-exchange Flow Pulse (IFP) metric. This metric measures the one-year cumulative sum of BTC net flows between Coinbase and other exchanges. The recent rally in the IFP indicates that more bitcoin is flowing into the U.S.-based crypto platform, likely in response to the price premium and the uptick in demand in the U.S.
Bitcoin demand in the perpetual futures market has also seen a boost, with Open Interest (OI) spiking by roughly 10,000 BTC to 276,000 BTC. This signals that traders are opening new long positions, with buy orders outweighing sell orders. The increased activity in the futures market aligns with the overall increase in demand for Bitcoin in the U.S.
Despite the 6% uptick in the price of Bitcoin, moving from $60,000 to $65,000, there has been a lack of significant profit-taking by investors. Realized profits amounting to $536 million pale in comparison to the multi-billion dollar profits recorded during previous market tops this year. This suggests that investors are holding onto their positions, possibly anticipating further price increases.
The Apparent Bitcoin Demand 30-day growth has declined significantly 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 that have not been moved in a year or more, is crucial for the market’s recovery. CryptoQuant emphasizes the need for increased apparent bitcoin demand before prices can make a full recovery and reach new highs in the future.
While Bitcoin demand in the U.S. has been on the rise, there are still uncertainties surrounding the overall market demand and its impact on price movements. Investors should remain cautious and monitor key metrics to gauge the sustainability of this upward trend in Bitcoin demand.