Declining Bitcoin Investor Demand in the US Following ETF Approval: CryptoQuant Analysis

By Owen Patter Jan 21, 202467Views

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BTC Investor Demand Slumps

After the SEC approved spot Bitcoin ETFs, BTC investor demand in the US has decreased. Coinbase’s premium has turned negative for the first time in 2024 due to high selling activity from short-term holders.

Unrealized Profit Margins Still High

The Bitcoin market is unlikely to hit a price bottom soon as unrealized profit margins have not declined enough. Short-term holders’ unrealized profit has fallen, but it may need to go below 0% before a price bottom can be called.

Hot Take: BTC Faces Selling Pressure Amidst Spot ETF Approval

The approval of spot Bitcoin ETFs by the SEC did not result in increased demand from US investors. Instead, there has been a sell-off by short-term holders, leading to a decrease in BTC’s value. Unrealized profit margins are still high, indicating that a new rally is not expected at the moment. Traders may need to exercise caution as the market continues to experience price corrections.

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Owen Patter

Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content. Owen's contributions serve as a valuable guide for both seasoned enthusiasts and newcomers, aiding them in navigating the dynamic world of cryptocurrencies with well-researched perspectives. With a meticulous commitment to precision, he empowers informed decision-making in the ever-evolving crypto domain.